city of chicago...we are pleased to submit the comprehensive annual financial report (“cafr”) of...

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_______________________________

CITY OF CHICAGO

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2017

Rahm Emanuel, Mayor

Carole L. Brown, Chief Financial Officer

Erin Keane, City Comptroller

Prepared by the Department of Finance

_______________________________

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CITY OF CHICAGO THE CITY COUNCIL

RAHM EMANUEL, Mayor

1st

Ward ............................................................................................................................................... JOE MORENO

2nd Ward ........................................................................................................................................... BRIAN HOPKINS 3rd Ward ................................................................................................................................................ PAT DOWELL 4th Ward ................................................................................................................................................ SOPHIA KING 5th Ward ................................................................................................................................... LESLIE A. HAIRSTON 6th Ward ............................................................................................................................... RODERICK T. SAWYER 7th Ward .................................................................................................................................. GREGORY MITCHELL 8th Ward .................................................................................................................................. MICHELLE A. HARRIS 9th Ward ......................................................................................................................................... ANTHONY BEALE 10th Ward ....................................................................................................................... SUSAN SADLOWSKI-GARZA 11th Ward ............................................................................................................................. PATRICK D. THOMPSON 12th Ward .............................................................................................................................. GEORGE A. CARDENAS 13th Ward .............................................................................................................................................. MARTY QUINN 14th Ward ..................................................................................................................................... EDWARD M. BURKE 15th Ward ................................................................................................................................... RAYMOND A. LOPEZ 16th Ward ......................................................................................................................................... TONI L. FOULKES 17th Ward .............................................................................................................................................. DAVID MOORE 18th Ward .................................................................................................................................... DERRICK G. CURTIS 19th Ward ................................................................................................................................... MATTHEW J. O’SHEA 20th Ward .................................................................................................................................... WILLIE B. COCHRAN 21st Ward ........................................................................................................................... HOWARD BROOKINS, JR.

22nd Ward ........................................................................................................................................ RICARDO MUÑOZ 23rd Ward ...................................................................................................................................... SILVANA TABARES 24th Ward ............................................................................................................................. MICHAEL W. SCOTT, JR. 25th Ward .......................................................................................................................................... DANIEL S. SOLIS 26th Ward ............................................................................................................................. ROBERTO MALDONADO 27th Ward ............................................................................................................................... WALTER BURNETT, JR. 28th Ward ........................................................................................................................................... JASON C. ERVIN 29th Ward .................................................................................................................................... CHRIS TALIAFERRO 30th Ward ................................................................................................................................... ARIEL E. REBOYRAS 31st Ward ......................................................................................................................................... MILLY SANTIAGO

32nd Ward ................................................................................................................................ SCOTT WAGUESPACK 33rd Ward ........................................................................................................................................... DEBORAH MELL 34th Ward ...................................................................................................................................... CARRIE M. AUSTIN 35th Ward ............................................................................................................................ CARLOS RAMIREZ-ROSA 36th Ward ..................................................................................................................................... GILBERT VILLEGAS 37th Ward ................................................................................................................................................. EMMA MITTS 38th Ward .................................................................................................................................. NICHOLAS SPOSATO 39th Ward .................................................................................................................................. MARGARET LAURINO 40th Ward ............................................................................................................................... PATRICK J. O’CONNOR 41st Ward ............................................................................................................................. ANTHONY NAPOLITANO

42nd Ward ........................................................................................................................................ BRENDAN REILLY 43rd Ward ........................................................................................................................................... MICHELE SMITH 44th Ward ................................................................................................................................... THOMAS M. TUNNEY 45th Ward ................................................................................................................................................ JOHN ARENA 46th Ward .................................................................................................................................... JAMES CAPPLEMAN 47th Ward ............................................................................................................................................ AMEYA PAWAR 48th Ward ..................................................................................................................................... HARRY OSTERMAN 49th Ward ...................................................................................................................................... JOSEPH A. MOORE 50th Ward .............................................................................................................................. DEBRA L. SILVERSTEIN

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PART I – INTRODUCTORY SECTION8

1213

PART II - FINANCIAL SECTION1518

Basic Financial StatementsExhibit 1 31Exhibit 2 32Exhibit 3 34Exhibit 4 Statement of Revenues, Expenditures and Changes in Fund Balances,

36Exhibit 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund

41Exhibit 6 Statement of Revenues and Expenditures - Budget and

42Exhibit 7 Statement of Revenues and Expenditures - Budget and

43Exhibit 8 44Exhibit 9 46Exhibit 10 47Exhibit 11 49Exhibit 12 50

51Required Supplementary Information

105109112

Combining and Individual Fund StatementsGeneral Fund

Schedule A-1 114Schedule A-2 117

Special Revenue Funds - Federal, State and Local GrantsSchedule B-1 134Schedule B-2 Special Revenue Funds - Federal, State and Local Grants - Combining Statement of

136Nonmajor Governmental Funds

Schedule C-1 139Schedule C-2 140

Nonmajor Special Revenue FundsSchedule D-1 144Schedule D-2 Combining Statement of Revenues, Expenditures and

146Schedule D-3 148Schedule D-4 Combining Schedule of Expenditures and Encumbrances - Budget and Actual

150Schedule D-5 152

Schedule of Other Postemployment Benefits Funding Progress, Last Three Years .........................................

Combining Balance Sheet ..........................................................................................................

Changes in Fund Balance (Deficit) ......................................................................Combining Schedule of Revenues - Budget and Actual (Budgetary Basis) ...............................

(Budgetary Basis) .................................................................................................

Revenues, Expenditures and Changes in Fund Balance .....................................

Special Revenue Funds - Federal, State and Local Grants - Combining Balance Sheet ..........

Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...................

Schedule of Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) ............

Statement of Revenues, Expenses and Changes in Net Position, Proprietary Funds ...............Statement of Cash Flows, Proprietary Funds ............................................................................Statement of Fiduciary Net Position, Fiduciary Funds ................................................................Statement of Changes in Plan Net Position, Fiduciary Funds - Pension Trust Funds ..............

Schedule of Revenues - Budget and Actual (Budgetary Basis) .................................................

Combining Balance Sheet ..........................................................................................................

Schedule of Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) ...........

Schedule of Changes in the Net Pension Liability and Related Ratios, Last Three Years ................................Schedule of Contributions, Last Ten Years ........................................................................................................

Notes to Basic Financial Statements ................................................................................................................

Statement of Activities ...............................................................................................................Balance Sheet, Governmental Funds ........................................................................................

Governmental Funds ............................................................................................

Balances of Governmental Funds to the Statement of Activities ..........................

Actual, General Fund (Budgetary Basis) ..............................................................

Statement of Net Position, Proprietary Funds ...........................................................................Actual, Pension Fund (Budgetary Basis) ..............................................................

2017 COMPREHENSIVE ANNUAL FINANCIAL REPORTOF THE CITY OF CHICAGO

Table of Contents

Letter of Transmittal .................................................................................................................................................Certificate of Achievement for Excellence in Financial Reporting ...........................................................................Organization Chart ...................................................................................................................................................

Independent Auditors’ Report ..................................................................................................................................Management’s Discussion and Analysis .................................................................................................................

Statement of Net Position ..........................................................................................................

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Combining and Individual Fund Statements - ConcludedNonmajor Capital Projects Funds

Schedule E-1 164Schedule E-2 165

Fiduciary FundsSchedule F-1 168Schedule F-2 170Schedule F-3 171

PART III - STATISTICAL SECTION (Unaudited)Table 1 174Table 2 176Table 3 182Table 4 184Table 4A 186Table 5 188Table 6 General Fund, Schedule of Revenues, Expenditures and Changes in Fund Balances,

190Table 7 Special Revenue Funds, Schedule of Revenues, Expenditures and

191Table 8 Debt Service Funds, Schedule of Revenues, Expenditures and

192Table 9 Capital Projects Funds, Schedule of Revenues, Expenditures and

193Table 10 194Table 11 Property Levies, Collections and Estimated

196Table 12 197Table 13 198Table 14 Property Tax Rates-Direct and Overlapping Governments, Per $100 of Equalized

200Table 15 Property Tax Rates-City of Chicago, Per $100 of Equalized

200Table 16 Ratio of General Net Bonded Debt to Equalized Assessed Value and

202Table 17 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total

204Table 18 205Table 19 206Table 20 208Table 21 210Table 22 212Table 23 214Table 24 216Table 25 218Table 26 223Table 27 224Table 28 225Table 29 226Table 30 226Table 31 227Table 32 228

General Governmental Revenues by Source, Last Ten Years ..................................................

Full Time Equivalent City of Chicago Employees by Function, Last Ten Years .........................

Assessed Valuation, Last Ten Years ....................................................................

Five Years Ended December 31, 2017 .................................................................

Changes in Fund Balances, Five Years Ended December 31, 2017 ...................

General Governmental Expenditures by Function, Last Ten Years ...........................................Changes in Fund Balances, Governmental Funds, Last Ten Years ..........................................

Assessed and Estimated Fair Market Value of All Taxable Property, Last Ten Years ...............

Capital Assets Statistics by Function, Last Ten Years ...............................................................

Pension Trust Funds, Combining Statement of Changes in Plan Net Position ..........................

Revenue Bond Coverage, Last Ten Years .................................................................................

Changes in Fund Balances, Five Years Ended December 31, 2017 ...................Property Tax Levies by Fund, Five Years Ended December 31, 2017 ......................................

Top Ten Estimated Equalized Assessed Valuation, Current Year and Nine Years Ago ............

Changes in Fund Balances, Five Years Ended December 31, 2017 ...................

Fund Balances, Governmental Funds, Last Ten Years .............................................................

Operating Indicators by Function/Department, Last Ten Years .................................................

Principal Employers (Non-government) Current Year and Nine Years Ago ...............................

Interest Rate Swap Counterparty Entities ...................................................................................

Allowance for Uncollectible Taxes, Last Ten Years ..............................................

Ratio of Outstanding Debt by Type, Last Ten Years ..................................................................Debt Service Requirements for General Long-term Debt ..........................................................Debt Service Requirements for General Obligation Debt ...........................................................

Governmental Expenditures, Last Ten Years .......................................................

Assessed Valuation, Last Ten Years ....................................................................

Debt Service Requirements for Proprietary Funds .....................................................................Long-term Debt ...........................................................................................................................Population and Income Statistics, Last Ten Years .....................................................................

Net Bonded Debt per Capita, Last Ten Years ......................................................

Combining Statement of Revenues, Expenditures and Changes in Fund Balance ...................Combining Balance Sheet ..........................................................................................................

Net Position by Component, Last Ten Years .............................................................................

Computation of Direct and Overlapping Bonded Debt ...............................................................Debt Statistics, Last Ten Years ..................................................................................................

Changes in Net Position - Accrual Basis of Accounting, Last Ten Years ...................................

Pension Trust Funds, Combining Statement of Plan Net Position .............................................Agency Funds, Combining Statement of Changes in Assets and Liabilities ..............................

Bank Facilities ............................................................................................................................

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PART I

INTRODUCTORY SECTION

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June 29, 2018

To the Honorable Mayor Rahm Emanuel, Members of the City Council, and Citizens of the City of Chicago:

We are pleased to submit the Comprehensive Annual Financial Report (“CAFR”) of the City of Chicago for the fiscal year that ended December 31, 2017. State law requires that all governmental units publish financial statements presented in conformity with generally accepted accounting principles (“GAAP”) and audited by a licensed public accountant within six months of the close of each fiscal year.

Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with management. The purpose of the CAFR is to provide complete and accurate financial information which complied with the reporting requirements of the Municipal Code of Chicago (“Code”). The City’s financial management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP.

The internal control structure is designed to provide reasonable but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management.

The Code also requires that the City’s basic financial statements are audited by independent certified public accountants selected by the Committee of Finance of the City Council. This requirement has been met, and the unmodified audit opinion rendered by Deloitte & Touche LLP is included in the financial section of this report. The audit was conducted as a subcontractor arrangement between Deloitte & Touche LLP and a consortium of Chicago-based minority - and women-owned certified public accounting firms.

In addition to meeting the requirements set forth in the Code, an additional audit (Single Audit Act Amendments of 1996, Government Auditing Standards, and Office of Management and Budget’s (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards) designed to meet the requirements of the OMB Uniform Guidance, a government-wide framework for grants management, is performed annually. GAAP requires that management provided a narrative introduction, overview and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). The letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.

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Profile of the Government. The City of Chicago, the third most populated city in the United States, was incorporated in 1837. It occupies land area of approximately 228 square miles and, according to the 2010 census, serves a population of more than 2.7 million residents. The City is a municipal corporation and home rule unit of local government under the Illinois Constitution of 1970 and is governed by an elected mayor and city council. The Mayor is the Chief Executive Officer of the City of Chicago and is elected by general election to a four-year term. The City Council, the City’s legislative body, consists of 50 members, each representing one of the City’s 50 wards. The members of the City Council are elected through popular vote by ward to a four-year term. The City provides public safety, street maintenance, sanitation services, water and sewer services, health, cultural, aviation and human services.

General Government Services (“General Fund”). The General Fund is the City’s general operating fund and supports essential City services and activities, such as police and fire protection, trash collection, and public health programs. The General Fund also supports a portion of the City’s share of pension contributions for its employees. General Fund revenues come primarily from a variety of local and intergovernmental taxes, fees and fines.

In addition to general government services, the City has component units that are included in its reporting entity because of the significance of their operational and/or financial relationships. These component units include the Municipal Employees’ Annuity and Benefit Fund of Chicago, Laborers’ Annuity and Benefit Fund, Policemen’s Annuity and Benefit Fund, the Firemen's Annuity and Benefit Fund, and the Sales Tax Securitization Corporation (“STSC”). Additional information about these component units can be found in the notes to the financial statements. Budget Process. Annual budgets are adopted for all of the City’s funds, including the general fund and certain special revenue and enterprise funds. On or before October 15, the Mayor submits a proposed budget of expenditures and the means required and at least one public hearing is held regarding the proposed budget. The budget recommendation must be made available for public inspection at least ten days prior to the passage of the annual appropriation ordinance, which must be enacted by December 31. Additional information on the budgetary process can be found in Note 3 of the notes in the financial statements. Local Economy. Chicago continues to have one of the world’s most robust and diverse economies with no single industry employing more than 12 percent of the City’s workforce. This diversity provides financial stability from mature industries in business and financial services, manufacturing, transportation and warehousing, education and healthcare, and enables the City to promote the growth of emerging industries in technology, tourism, biotech, and life sciences. Chicago has more than 400 major corporate headquarters (with at least 1,000 employees) located in the Chicago metropolitan area, including 34 Fortune 500 companies. For the fifth year in a row, the Chicago area was recognized in 2017 by Site Selection Magazine as having more new and expanded corporate facilities than any other metro area with a population over one million.

Chicago remains a global financial and trading center and accounts for one fifth of the world’s global derivatives trading market, which is two times the size of New York City’s market. Chicago-based exchanges generated $4.9 billion in annual global derivatives trading volume with a notional value of more than one quadrillion dollars in 2017. The Chicago Board Options Exchange is the largest options exchange in the United States, and Chicago-headquartered CME Group is the top derivatives exchange in the world. For the first time in 2017, Chicago led all major cities in the Americas for Foreign Direct Investment (FDI) Strategy according to fDi Magazine’s The American Cities of the Future. As the home to 80 consulates and honorary consulates, 100 international/ethnic chambers of commerce and international trade-based organizations, Chicago continues to be the global gateway for international business activity with more than 1,800 foreign-based companies representing over $100 billion in foreign direct investment.

Chicago’s aviation system is at the nexus of global travel. Serving more than 79 million passengers in 2017, Chicago’s O’Hare International Airport -- a dual hub to American and United Airlines -- serves a total of 46 domestic and international carriers, operates 185 gates, and provides concessions from more than 174,000 square feet of airport space. Midway Airport, the City’s second airport facility serves international and regional jet activity from five active runways. It operates from 43 gates and offers a variety of 49 concessionaires to the traveling public.

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Both airports are self-supporting, using no local or state tax dollars for operations or capital improvements. Together Chicago’s airport system generates more than $45 billion in annual economic activity and has created 540,000 jobs for the region.

In addition, Chicago continues to be a destination for both business and leisure travelers, drawn by the City’s numerous cultural attractions, professional sports teams, festivals, museums, parks, restaurants and more. Tourism has grown substantially in recent years with a record 55.2 million visitors citywide in 2017, an increase of 2.5 percent over the prior year. Chicago’s tourism industry supported 146,500 jobs in 2017, which is a 17 percent increase since 2011. Millennium Park was named the #1 attraction in the Midwest and among the top 10 most visited sites in the US with 12.9 million guests just in the second half of 2016. Economic Development. A sign of Chicago’s strong economic growth, the City has seen a 400 percent increase in the number of tower cranes operating in Chicago in 2017 compared to 2010. In 2017, there were 60 tower cranes operating in the City, breaking records for the most tower cranes to operate in one year since the height of the Great Recession.

In 2017, the Chicago Riverwalk and the Chinatown Branch of the Chicago Public Library received recognition from the Architizer A+ Award – the largest awards program focused on promoting and celebrating the year’s best architecture and products. The Chicago Riverwalk was recognized in the Architecture and Urban Transformation category and the Chinatown Branch Library was recognized in the Institution-Libraries category. The Chinatown Branch Library opened in August 2015. The most recent expansion of the Chicago Riverwalk to Wolf Point opened to the public in fall 2016.

Community investments like the Neighborhood Opportunity Fund are helping to generate an economic boost to a diverse mix of small businesses and services by providing grant funding to local entrepreneurs to expand, rehab, repair and grow their commercial businesses and cultural institutions in 2017. Through partnerships with downtown developments and corporate leaders, the Neighborhood Opportunity Fund has leveraged downtown growth to generate money for neighborhood economies, helping more than 30 small businesses in some of Chicago’s underserved communities.

Debt Administration. The City regularly accesses the debt markets to fund its capital needs. The City actively manages its debt portfolio to ensure that it sufficiently supports essential capital improvement projects without over burdening taxpayers. As of December 31, 2017 the City has approximately $9.7 billion of general obligation debt outstanding. Overall general obligation debt increased by $660 million in 2017 as a result of the issuance of General Obligation Project and Refunding Bonds, Series 2017AB in the early part of the year and the refunding of certain other callable general obligation bonds by the STSC. The AAA/AAA/AA rated Sales Tax Securitization Revenue Bonds, Series 2017ABC refunding bonds issued by the STSC achieved $46.3 million in present value savings in debt service for City taxpayers.

In addition to its general obligation debt, the City issues revenue debt secured by the following revenues: general airport revenues, water and wastewater fee revenue, and motor fuel tax revenue. Additional information on the City’s outstanding indebtedness can be found in Note 9 of the notes in the financial statements.

Long Term Planning and Major Initiatives. Each year the City of Chicago presents an Annual Financial Analysis based on the critical understanding that to protect the health and safety of all Chicagoans, strengthen neighborhoods, maintain infrastructure and public spaces, and foster a vibrant local economy, it must take an informed and long-term approach to financial planning. The Annual Financial Analysis, which is available on the City’s website, provides a review of the City’s revenues and expenditures over the past ten years, forecast of the City’s finances for the next three years, and analyses of its liquidity, pensions, debt obligations, tax increment financing, and capital improvement program.

The City bases its annual budget on an assessment of the available resources for that year and an understanding of the City’s service priorities, adopting a balanced budget each year in accordance with the Illinois Municipal Code.

CITY OF CHICAGO

ORGANIZATION CHART

AS OF 12/31/2017

Chicago Residents

City Council

Council Committees

Mayor

Office of the Mayor

Finance and Administration

Office of Budget and Management

Department of Innovation and

Technology

Department of Finance

Department of Administrative

Hearings

Department of Law

Department of Human Resources

Department of Procurement

Services

Department of Fleet and Facility

Management

Legislative and Elections

Board of Election Commissioners

City Development

Department of Planning and Development

Department of Cultural Affairs and

Special Events

Community Services

Department of Public Health

Commission on Human Relations

Mayor's Office for People with Disabilities

Department of Family and Support

Services

Chicago Public Library

Public Safety

Police Board

Civilian Office of Police

Accountability

Police Department

Office of Emergency

Management and Communications

Fire Department

Regulatory

Office of the Inspector General

Department of Buildings

Department of Business Affairs and Consumer

Protection

Commission on Animal Care and

Control

License Appeal Commission

Board of Ethics

Infrastructure Services

Department of Streets and Sanitation

Department of Transportation

Department of Water Management

Department of Aviation

City Clerk City Treasurer

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PART II

FINANCIAL SECTION

INDEPENDENT AUDITORS’ REPORT, MANAGEMENT’S DISCUSSION AND ANALYSIS

AND THE BASIC FINANCIAL STATEMENTS

INDEPENDENT AUDITORS’ REPORT

To the Honorable Rahm Emanuel, Mayor and Members of the City Council City of Chicago, Illinois

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chicago, Illinois (the “City”), as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the City’s Pension Plans (the “Plans”), which, in aggregate, represent 100 percent, 95 percent, and 100 percent, respectively, of the revenues, assets, and net position of the fiduciary funds, included in the aggregate remaining fund information. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Plans, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions

In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chicago, Illinois, as of December 31, 2017, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America and the respective budgetary comparison statements for the General Fund and Pension Special Revenue Fund on the budgetary basis of accounting.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Schedule of Changes in the Net Pension Liability and Related Ratios, Schedule of Contributions, and Schedule of Other Postemployment Benefits Funding Progress as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Combining and Individual Fund Statements, introductory section, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Combining and Individual Fund Statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the reports of the other auditors, the Combining and Individual Fund Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

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The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

June 29, 2018

CITY OF CHICAGO, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2017

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Management’s Discussion and Analysis As management of the City of Chicago, Illinois (City) we offer readers of the City’s Comprehensive Annual Financial Report (CAFR) this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2017. We encourage the readers to consider the information presented here in conjunction with information that we have furnished in our letter of transmittal, contained within this report. 2017 Financial Highlights • Liabilities and Deferred Inflows of the City, in the government-wide financial statements, exceeded its assets and

deferred outflows at the close of the most recent fiscal year by $28,368.1 million (net deficit). The net deficit is composed of $3,314.9 million in net investment in capital assets and $3,284.1 million in net position restricted for specific purposes offset by an unrestricted deficit of $34,967.1 million. The net deficit increased in 2017 by $938.2 million due to expenses being greater than revenues for 2017.

• The City's total assets increased by $3,593.8 million. This increase primarily relates to a $1,109.2 million increase in capital assets as a result of the City's capital improvement program, and a $1,210.6 million and $1,014.8 million increase in cash, cash equivalents and investments in the proprietary and governmental funds, respectively due to issuance of debt.

• The City’s deferred outflows and total liabilities decreased by $1,668.5 million and $4,634.8 million, respectively,

and the City’s deferred inflows increased by $7,498.3 million. These were primarily related to the decrease in the net pension liability as a result of the changes under Public Act 100-0023 (P.A. 100-0023) which requires increased future contributions to the Municipal Employees’ Annuity Benefit Fund of Chicago (Municipal Employees’) and the Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago (Laborers’). The increase in future required contributions increased the discount rate used to determine the total pension liability and therefore decreased the pension liability.

• Total Revenues and Other Financing Sources (Uses), in the fund financial statements, during 2017 were $8,057.0

million, an increase of $714.7 million (9.7%) from 2016, primarily due to the increased proceeds from debt. • The General Fund ended 2017 with a total Fund Balance of $288.4 million, of which $155.5 million was

Unassigned. Total Fund Balance increased from 2016 primarily because Revenues and Other Financing Sources were greater than Expenditures and Other Financing Uses by $16.6 million.

• The City’s General Obligation Bonds and notes outstanding increased by $513.6 million during the current fiscal

year. The proceeds from the issuance of General Obligation Bonds were used to fund capital projects, refund or pay interest on all or a portion of certain outstanding general obligation bonds, fund capitalized interest and pay costs of issuance.

• The General Fund expenditures on a budgetary basis were $96.1 million less than budgeted as a result of

variances in general government expenditures primarily due to lower than anticipated personnel costs.

• During 2017, the City entered into an Assignment, Purchase and Sale Agreement with the newly-formed Sales Tax Securitization Corporation (STSC). The STSC is a special purpose not-for-profit, non-stock corporation which provides benefits exclusively to the City, and as a result, is presented as a blended component unit of the City. The STSC issued $743.7 million in bonds, the proceeds of which were applied by the City to refund certain outstanding City bonds.

Overview of the Basic Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which include the following components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements. These components are described below:


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Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, using accounting methods similar to those used by private-sector companies. The statements provide both short-term and long-term information about the City’s financial position, which assists in assessing the City’s economic condition at the end of the fiscal year. These financial statements are prepared using the flow of economic resources measurement focus and the accrual basis of accounting. This basically means such statements follow methods that are similar to those used by most businesses. They take into account all revenues and expenses connected with the fiscal year even if cash involved has not been received or paid. The government-wide financial statements include two statements: The statement of net position presents information on all of the City’s assets, deferred outflows, liabilities, and deferred inflows with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating, respectively. To assess the overall health of the City, the reader should consider additional non-financial factors such as changes in the City’s property tax base and the condition of the City’s infrastructure. The statement of activities presents information showing how the government’s net position changed during each fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (for example, uncollected taxes, and earned but unused vacation). This statement also presents a comparison between direct expenses and program revenues for each function of the City. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, streets and sanitation, transportation, health, and cultural and recreation. The business-type activities of the City include water, sewer, tollway and airport services. The government-wide financial statements present information about the City as a primary government, which includes the Chicago Public Library. The government-wide financial statements can be found immediately following this management’s discussion and analysis. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of a fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. The City maintains 22 individual governmental funds. Information for the eight funds that qualify as major is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. The eight major governmental funds are as follows: the General Fund,


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the Federal, State and Local Grants Fund, the Special Taxing Areas Fund, the Service Concession and Reserve Fund, the Bond, Note Redemption and Interest Fund, the STSC Debt Service Fund, the Community Development and Improvement Projects Fund, and the Pension Fund. Data from the other governmental funds is combined into a single, aggregated presentation. The City adopts an annual appropriation budget for its general and certain special revenue funds on a non-GAAP budgetary basis. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found immediately following the government-wide statements. Blended Component Unit. The STSC component unit, despite being legally separate from the City, is reported as if it were part of the City because, in addition to being financially accountable for it, the STSC provides services exclusively to the City. The STSC blended component unit is reported as the STSC Debt Service Fund and a Nonmajor Special Revenue Fund. Proprietary funds. These funds are used to show activities that operate more like those of commercial enterprises. Because these funds charge user fees for services provided to outside customers including local governments, they are known as enterprise funds. Proprietary funds, like government-wide statements, use the accrual basis of accounting and provide both long- and short-term financial information. There is no reconciliation needed between the government-wide financial statements for business-type activities and the proprietary fund financial statements. The City uses five enterprise funds to account for its water, sewer, Skyway, and two airports operations. Proprietary funds provide the same type of information as the government-wide financial statements, but provide more detail. The proprietary fund financial statements provide separate information for the Water Fund, Sewer Fund, Chicago Skyway Fund, Chicago-O’Hare International Airport Fund and the Chicago Midway International Airport Fund. All the proprietary funds are considered to be major funds of the City. The basic proprietary fund financial statements can be found immediately following the governmental fund financial statements. Fiduciary funds. Fiduciary funds are used primarily to account for resources held for the benefit of parties outside the primary government. The City is the trustee, or fiduciary, for its employees’ pension plans. It is also responsible for other assets that, because of a trust arrangement can be used only for the trust beneficiaries. The City also uses fiduciary funds to account for transactions for assets held by the City as agent for various entities. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. All of the City’s fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund basic financial statements can be found immediately following the proprietary fund financial statements. Notes to the basic financial statements. The notes provide additional information that is essential for a full understanding of data provided in the government–wide and fund financial statements. The notes to the basic financial statements can be found immediately following the fiduciary fund basic financial statements. Additional Information. The combining statements, which include nonmajor funds, for governmental funds and trust and agency funds are presented immediately following the notes to the basic financial statements. Financial Analysis of the City as a whole Net Position. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, liabilities and deferred inflows exceeded assets by $28,368.1 million at December 31, 2017. Of this amount, $3,314.9 million represents the City’s investment in capital assets (land, buildings, roads, bridges, etc.) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to


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repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities and deferred inflows. An additional portion of the City’s net position, $3,284.1 million, represents resources that are subject to external restrictions on how they may be used.

2017 2016 2017 2016 2017 2016Current and other assets ................ 6,639.4$ 5,451.0$ 6,112.4$ 4,816.2$ 12,751.8$ 10,267.2$ Capital assets ................................. 8,745.6 8,676.3 16,437.5 15,397.6 25,183.1 24,073.9

Total Assets ................................ 15,385.0 14,127.3 22,549.9 20,213.8 37,934.9 34,341.1 Deferred outflows ........................... 4,089.9 5,667.9 1,194.9 1,285.4 5,284.8 6,953.3

Total ........................................... 19,474.9 19,795.2 23,744.8 21,499.2 43,219.7 41,294.4

Long-term liabilities outstanding ..... 37,411.5 43,065.4 18,771.4 18,351.4 56,182.9 61,416.8 Other liabilities ................................ 2,364.5 1,947.5 1,521.5 1,339.4 3,886.0 3,286.9

Total Liabilities ............................ 39,776.0 45,012.9 20,292.9 19,690.8 60,068.9 64,703.7

Deferred Inflows ............................. 8,413.7 2,254.5 3,105.2 1,766.1 11,518.9 4,020.6

Net Position:Net investment in capital assets ..... (551.1) (65.5) 3,866.0 3,373.1 3,314.9 3,307.6 Restricted ....................................... 2,416.1 2,269.6 868.0 879.9 3,284.1 3,149.5 Unrestricted .................................... (30,579.8) (29,676.3) (4,387.3) (4,210.7) (34,967.1) (33,887.0)

Total net (deficit) position ............ (28,714.8)$ (27,472.2)$ 346.7$ 42.3$ (28,368.1)$ (27,429.9)$

City of Chicago, IllinoisSummary Statement of Net Position

(in millions of dollars)

TotalBusiness-type

ActivitiesGovernmental

Activities

Governmental Activities. Net position of the City’s governmental activities decreased $1,242.6 million to a deficit of $28,714.8 million primarily due to expenses being greater than revenues and transfers in for 2017. A significant portion of net position is either restricted as to the purpose they can be used for or they are classified as net investment in capital assets (buildings, roads, bridges, etc.). Consequently, unrestricted net position showed a $30,579.8 million deficit at the end of this year. This deficit does not mean that the City does not have the resources available to pay its bills next year. Rather, it is the result of having long-term commitments that are greater than currently available resources. Specifically, the City did not include in past annual budgets the full amounts needed to finance future liabilities arising from personnel, property, pollution and casualty claims ($1,047.8 million) and Municipal Employees’, Laborers’, Policemen’s and Firemen’s net pension liability and other post-employment benefits ($25,246.6 million). The City will include these amounts in future years’ budgets as they come due. In addition, the deferred inflow balance of $1,513.2 million from concession service agreements will be amortized into income over the life of such agreements. Revenues for all governmental activities in 2017 were $6,935.4 million, an increase of $196.0 million from 2016. Over half of the City’s revenues were derived from taxes which increased by $190.8 million (4.7%). Total tax revenue included an increase in property taxes received of $62.7 million (5.0%). Expenses for governmental activities in 2017 were $8,180.2 million, a decrease of $1,998.1 million (19.6%) over 2016. This decrease is primarily due to a decrease in pension expense as a result of the changes under P.A. 100-0023 which requires increased future contributions to Municipal Employees’ and Laborers’. The increase in future required contributions increased the discount rate used to determine the total pension liability and decreased the current year pension expense. The amount that taxpayers paid for these governmental activities through City taxes was $4,286.0 million. Some of the cost was paid by those who directly benefited from the programs ($900.3 million), or by other governments and organizations that subsidized certain programs with grants and contributions ($678.7 million).


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The City paid $1,070.4 million for the “public benefit” portion with other revenues such as state aid, interest and miscellaneous income. Although total net position of business-types activities was $346.7 million, these resources cannot be used to make up for the deficit in net position in governmental activities. The City generally can only use this net position to finance the continuing operations of the water, sewer, Skyway, and airports activities.

2017 2016 2017 2016 2017 2016Revenues and Other Transfers:

Program Revenues:Licenses, Permits, Fines and

Charges for Services ........................... 900.3$ 879.7$ 2,527.8$ 2,502.1$ 3,428.1$ 3,381.8$ Operating Grants and Contributions ........ 473.2 516.7 - - 473.2 516.7 Capital Grants and Contributions ............. 205.5 221.5 120.0 115.1 325.5 336.6

General Revenues:Property Taxes ........................................ 1,327.2 1,264.5 - - 1,327.2 1,264.5 Other Taxes ............................................ 2,958.8 2,830.7 - - 2,958.8 2,830.7 Grants and Contributions not

Restricted to Specific Programs .......... 762.0 782.0 - - 762.0 782.0 Other ....................................................... 308.4 244.3 83.6 48.5 392.0 292.8 Total Revenues ....................................... 6,935.4 6,739.4 2,731.4 2,665.7 9,666.8 9,405.1

Expenses:General Government ................................. 2,914.7 4,549.2 - - 2,914.7 4,549.2 Public Safety ............................................... 3,636.1 4,266.1 - - 3,636.1 4,266.1 Streets and Sanitation ................................. 247.8 257.0 - - 247.8 257.0 Transportation ............................................. 414.0 378.8 - - 414.0 378.8 Health ......................................................... 124.1 116.7 - - 124.1 116.7 Cultural and Recreational ............................ 121.5 114.7 - - 121.5 114.7 Interest on Long-term Debt ......................... 722.0 495.8 - - 722.0 495.8 Water .......................................................... - - 581.6 816.0 581.6 816.0 Sewer ......................................................... - - 293.0 350.4 293.0 350.4 Midway International Airport ........................ - - 285.0 320.0 285.0 320.0 Chicago-O'Hare International Airport .......... - - 1,256.7 1,330.2 1,256.7 1,330.2 Chicago Skyway ......................................... - - 8.5 8.7 8.5 8.7

Total Expenses .................................... 8,180.2 10,178.3 2,424.8 2,825.3 10,605.0 13,003.6 Change in Net Position Before Transfers (1,244.8) (3,438.9) 306.6 (159.6) (938.2) (3,598.5)

Transfers In (Out) .................................... 2.2 2.5 (2.2) (2.5) - -

Change in Net Position ............................ (1,242.6) (3,436.4) 304.4 (162.1) (938.2) (3,598.5)

Net (Deficit) Position, Beginning of Year ......... (27,472.2) (24,035.8) 42.3 204.4 (27,429.9) (23,831.4)

Net (Deficit) Position, End of Year .................. (28,714.8)$ (27,472.2)$ 346.7$ 42.3$ (28,368.1)$ (27,429.9)$

Governmental Activities

City of Chicago, IllinoisChanges in Net Position

Years Ended December 31, (in millions of dollars)

Business-typeActivities Total


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- 400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800 5,200 5,600 6,000 6,400

General Government

Public Safety

Streets and Sanitation

Transportation

Health

Cultural and Recreational

Interest on Long-term Debt

Expenses and Program Revenues - Governmental Activities (in millions of dollars)

Expenses Program Revenues

Licenses, Permits, Fines and Charges for Services

13%

Operating Grants and Contributions

7%

Capital Grants and Contributions

3%

Property Tax 19%

Other Taxes 43%

Grants and Contributions not restricted to specific

programs 11%

Other 4%

Revenues by Source - Governmental Activities


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Business-type Activities. Total Revenues of the City’s business-type activities increased by $65.7 million in 2017 mostly from an increase in charges for services, rental income, and other general revenues. • The Water Fund’s total operating revenues decreased by $2.4 million (0.3%) from 2016 primarily due to a

decrease in net water fees of $6.2 million resulting from the continued conversion from non-metered to metered accounts, offset by an increase in penalties and other revenues related to water fees of $3.8 million. Operating expenses before depreciation and amortization for the year ended 2017 decreased by $136.2 million (25.3%) from the year ended 2016 primarily due to a decrease in pension expense of $132.9 million as a result of the changes under P.A. 100-0023 which requires increased future contributions to Municipal Employees’ and Laborers’. The increase in future required contributions increased the discount rate used to determine the total pension liability and decreased the current year pension expense.

• The Sewer Fund’s total operating revenues decreased in 2017 by $11.3 million (3.1%) primarily due to the conversion of non-metered customers to metered customers. There was a rate increase of 1.83% effective June 1, 2017. Operating expenses before depreciation and amortization for 2017 decreased $64.4 million (28.3%) from 2016 primarily due to a decrease in pension expense of $70.5 million as a result of the changes under P.A. 100-0023 which requires increased future contributions to Municipal Employees’ and Laborers’. The increase in future required contributions increased the discount rate used to determine the total pension liability and decreased the current year expense.

• Chicago Midway International Airport’s total operating revenues for 2017 increased by $12.8 million (7.0%) from 2016 primarily due to increases in the landing fees and terminal rental rates to pay for capital development of the airport, increases in concession revenues due to a new concessions management contract that the Airport entered into in May 2017 with Midway Partnership LLC, and parking revenues due to a new rate structure implemented in January 2017. Operating expenses before depreciation and amortization decreased by $11.6 million (6.4%) compared to 2016 primarily due to a decrease in pension expense as a result of the changes under P.A. 100-0023 which requires increased future contributions to Municipal Employees’ and Laborers’. The increase in future required contributions increased the discount rate used to determine the total pension liability and decreased the current year pension expense. This was offset by an increase in professional and engineering services for pre-construction (planning) related services associated with the Midway Modernization Program.

• Chicago O’Hare International Airport’s total operating revenues for 2017 increased by $28.3 million (3.0%)

compared to 2016 primarily due to increases in concession revenues, parking revenues due to a new rate structure implemented in January 2017, and rents. Operating expenses before depreciation, amortization and loss on capital asset disposals decreased by $98.7 million (13.1%) compared to 2016 primarily due to a decrease in pension expense as a result of the changes under P.A. 100-0023 which requires increased future contributions to Municipal Employees’ and Laborers’. The increase in future required contributions increased the discount rate used to determine the total pension liability and decreased the current year pension expense. This was offset by an increase in professional and engineering services primarily due to the O’Hare Use and Lease Agreement related Terminal Area Plan development negotiations.

• The Chicago Skyway was leased for 99 years to a private company. The agreement granted the company the right to operate the Skyway and to collect toll revenue during the term of the agreement. The City received an upfront payment of $1.83 billion of which $446.3 million was used to advance refund all of the outstanding Skyway bonds. The upfront payment is being amortized into nonoperating revenue over the period of the lease ($18.5 million annually).


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- 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400

Water

Sewer

Chicago Midway International Airport

Chicago-O'Hare International Airport

Chicago Skyway

Expenses and Program Revenues - Business-type Activities (in millions of dollars)

Expenses Program Revenues

Licenses, Permits, Fines and Charges for

Services 93%

Capital Grants and Contributions

4%

Other 3%

Revenues by Source - Business-type Activities


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Financial Analysis of the City’s Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At December 31, 2017, the City’s governmental funds reported combined ending fund balances of $1,622.0 million, an increase of $713.7 million in comparison with the prior year. Of this total amount, $790.5 million was committed to specific expenditures, $106.9 million was assigned to anticipated uses, a deficit of $1,973.9 million was unassigned, $1,903.5 million was restricted in use by legislation, and $795.0 million was nonspendable. The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $155.5 million with a total fund balance of $288.4 million. As a measure of the General Fund’s liquidity, it may be helpful to compare both unassigned fund balance and total fund balance to total fund expenditures. Total General Fund balance represents 8.3% of total General Fund expenditures. The fund balance of the City’s General Fund increased by approximately $18.8 million during the current fiscal year due to higher revenues and lower expenses for certain categories. The Federal, State and Local Grants Fund has a total deficit fund balance of $241.4 million. The deficit is $1.5 million lower than 2016 primarily due to more timely reimbursement of expenditures. The Special Taxing Areas Fund has a total fund balance of $1,347.3 million, which is all restricted to specific expenditures. The Service Concession and Reserve Fund accounts for deferred inflows from nonbusiness type long-term concession and lease transactions and has $668.3 million committed to specific expenditures. The unassigned deficit of $1,513.2 million results from the deferred inflows from long-term asset leases. The Bond, Note Redemption and Interest Fund has a total fund deficit of $329.0 million. This is $596.8 million lower than 2016, primarily due to the refunding of certain outstanding City bonds. The STSC Debt Service Fund has a total fund balance of $795.1 million, of which $769.1 million is nonspendable and $26.0 million is restricted. The fund balance will be used for future debt service payments for certain outstanding bonds. The Community Development and Improvement Projects Fund has a total fund balance of $346.0 million. This is $301.0 million higher than 2016 primarily due to an increase in bond proceeds. Changes in fund balance. The fund balance for the City’s governmental funds increased by $713.7 million in 2017. This includes an increase in inventory of $2.2 million. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net position of the Water, Sewer, Chicago Skyway, Chicago-O’Hare International Airport, and Chicago Midway International Airport Funds at the end of the year amounted to a deficit of $4,387.3 million. The unrestricted net position deficit increased by $176.6 million primarily due to an increase in the accrued liabilities in the Water Fund for IEPA loan activity. Other factors concerning the finances of these five funds have already been addressed in the discussion of the City’s business-type activities.


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General Fund Budgetary Highlights The City’s 2017 Original General Fund Budget of $3,780.2 million was approved by City Council on November 16, 2016. The Final General Fund Budget of $3,796.6 million was approved by City Council on February 22, 2017. The Final Budget included an additional $16.4 million of prior year available resources, which represented unexpended funds from an earlier property tax rebate program which was authorized as part of the 2016 Budget. General Fund revenues ended the year $56.9 million under the 2017 Final General Fund Budget primarily as a result of not using $53 million of budgeted prior reappropriations authorized by a series of amendments to the 2017 Original General Fund Budget. Expenditures were $96.1 million less than budgeted amounts as a result of favorable variances in general government expenditures. Additional information on the City’s budget can be found in Note 3 under Stewardship, Compliance and Accountability within this report. Capital Asset and Debt Administration Capital Assets. The City’s capital assets for its governmental and business-type activities as of December 31, 2017 amount to $25,183.1 million (net of accumulated depreciation). These capital assets include land, buildings and system improvements, machinery and equipment, roads, highways and bridges, and property, plant and equipment. Major capital asset events during the current fiscal year included the following: • During 2017, the City completed $412.0 million in infrastructure projects including $202.3 million in street

construction and resurfacing projects, $126.4 million in street lighting and transit projects, and $83.3 million in bridge and viaduct reconstruction. At year end, infrastructure projects still in process had expenses totaling nearly $665.8 million.

• At the end of 2017, the Water Fund had $4,467.3 million invested in utility plant, net of accumulated depreciation. During 2017, the Water Fund expended $425.8 million on capital activities. This included $5.1 million for structures and improvements, $124.1 million for distribution plant, $11.4 million for equipment, and $285.1 million for construction in progress. During 2017, net completed projects totaling $219.6 million were transferred from construction in progress to applicable capital accounts. The major completed projects were installation and replacement of water mains ($124.5 million), meter save program ($24.9 million), and conversion of the Springfield pumping station from steam to electric power ($67.4 million).

• At the end of 2017, the Sewer Fund had $2,576.1 million invested in utility plant, net of accumulated

depreciation. During 2017, the Sewer Fund had capital additions being depreciated of $144.3 million, and completed projects totaling $9.1 million were transferred from construction in progress to applicable facilities and structures capital accounts. The 2017 Sewer Main Replacement Program completed 22.3 miles of sewer mains and 40.7 miles of relining of existing sewer mains.

• At the end of 2017, Chicago-Midway International Airport had $1,167.1 million invested in net capital assets. During 2017, the Airport had additions of $35.9 million related to capital activities. This included $0.8 million for land acquisition and the balance of $35.1 million for construction projects relating to runway rehabilitation and parking and security improvements. During 2017, completed projects totaling $14.2 million were transferred from construction in progress to applicable buildings and other facilities capital accounts. These major completed projects were related to runway and taxi improvements, roads, and sidewalks.

• At the end of 2017, Chicago-O’Hare International Airport had $8.0 billion invested in net capital assets. During 2017, the Airport had additions of $889.2 million related to capital activities. This included $0.2 million for land acquisition and the balance of $889.0 million for construction in progress related to new runway construction projects (Runway 9C-27C) and associated taxiways, central deicing pad and construction of the Consolidated Rental Car Facility and Automated Transit System extension. During 2017, completed projects totaling $189.4 million were transferred from construction in progress to applicable buildings and other facilities capital accounts. These major completed projects were related to runway and taxi improvements, electrical system upgrades, parking facilities heating and refrigeration system enhancements, and security and terminal improvements.


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2017 2016 2017 2016 2017 2016

Land .................................................... 1,399.8$ 1,397.3$ 1,028.7$ 1,027.8$ 2,428.5$ 2,425.1$ Works of Art and Historical Collections .......................... 47.0 46.0 - - 47.0 46.0 Construction in Progress ..................... 694.0 741.0 1,873.7 1,045.0 2,567.7 1,786.0 Buildings and Other Improvements ..... 1,534.6 1,585.4 13,174.9 13,028.0 14,709.5 14,613.4 Machinery and Equipment .................. 285.0 239.7 360.2 296.8 645.2 536.5 Infrastructure ....................................... 4,785.2 4,666.8 - - 4,785.2 4,666.8

Total ................................................... 8,745.6$ 8,676.2$ 16,437.5$ 15,397.6$ 25,183.1$ 24,073.8$

City of Chicago, IllinoisCapital Assets (net of depreciation)

(in millions of dollars)

TotalBusiness-type


Activities

Information on the City’s capital assets can be found in Note 7 Capital Assets in this report. Debt. At the end of the current fiscal year, the City had $9,349.4 million in General Obligation Bonds and $337.2 million in General Obligation Certificates and Other Obligations outstanding. Other outstanding long-term debt is as follows: $743.7 million in Sales Tax Securitization Corporation Bonds (STSC Bonds); $254.2 million in Motor Fuel Tax Revenue Bonds; $27.9 million in Tax Increment Financing Bonds; and $14,664.1 million in Enterprise Fund Bonds and long-term obligations. For more detail, refer to Note 9 Long-term Obligations in the Basic Financial Statements.

2017 2016 2017 2016 2017 2016

General Obligation ....... 9,686.6$ 9,173.0$ -$ -$ 9,686.6$ 9,173.0$ Tax Increment ............. 27.9 33.5 - - 27.9 33.5 Revenue Bonds ........... 254.2 766.6 14,664.1 13,203.3 14,918.3 13,969.9 STSC Bonds ................ 743.7 - - - 743.7 - Total ............................ 10,712.4$ 9,973.1$ 14,664.1$ 13,203.3$ 25,376.5$ 23,176.4$

General Obligation and Revenue Bonds(in millions of dollars)

TotalBusiness-type


Activities

During 2017, the City and the STSC issued the following: General Obligation Bonds: • General Obligation Bonds, Project and Refunding Series 2017A and Taxable Project Series 2017B ($1,160.3

million). Enterprise Fund Revenue Bonds and Notes: • Chicago – O’Hare International Airport General Commercial Paper Notes ($102.2 million). • Chicago – O’Hare International General Airport Senior Lien Revenue Bonds, Series 2016D (Non-AMT), Series

2016E (Non-AMT), Series 2016F (Non- AMT) and Series 2016G (AMT) ($1,117.2 million).


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• Chicago – O’Hare International General Airport Senior Lien Revenue and Revenue Refunding Bonds, Series 2017A (Non-AMT), Series 2017B (Non-AMT), Series 2017C (Non-AMT) and Series 2017D (AMT) ($812.5 million).

• Second Lien Water Revenue Refunding Bonds, Series 2017 ($199.4 million) and 2017-2 ($235.3 million). • Second Lien Wastewater Revenue and Revenue Refunding Bonds, Series 2017 A&B ($396.1 million). Sales Tax Securitization Corporation Bonds: • Sales Tax Securitization Bonds Refunding Series 2017A and Taxable Series 2017B & C ($743.7 million).

At December 31, 2017 the City had credit ratings with each of the four major rating agencies as follows:

Standard &Rating Agency Moody's Poors Fitch Kroll

General Obligation:City Ba1 BBB+ BBB- BBB+

Revenue Bonds:

O'Hare Airport:Senior Lien General Airport Revenue Bonds A2 A A A+Senior Lien Passenger Facility Charge (PFC) A2 A A NRCustomer Facility Charge (CFC) Baa1 BBB NR NR

Midway Airport:First Lien A2 A NR NRSecond Lien A3 A A A

Water:First Lien Baa1 A+ AA NRSecond Lien Baa2 A AA- AA

Wastewater:First Lien Baa2 A+ NR NRSecond Lien Baa3 A AA- AA-

Sales Tax Ba1 AA BBB- AA+

Motor Fuel Tax Ba1 BB+ BBB- NR

In February 2017, Fitch Ratings (Fitch) downgraded the rating of the Motor Fuel Tax revenue bonds from BBB to BBB-, with a negative outlook. In May 2017, Fitch downgraded ratings of the Senior Lien Water revenue bonds from AA+ to AA, with a negative outlook. In May 2017, Fitch downgraded ratings of the Second Lien Water revenue bonds from AA to AA-, with a negative outlook. In May 2017, Fitch downgraded ratings of the Senior Lien Wastewater Transmission revenue bonds from AA to AA-, with a negative outlook. In June 2017, S&P downgraded the rating of the Motor Fuel Tax revenue bonds from BBB- to BB+ with a negative outlook. See Subsequent Events in the footnotes for ratings changes in 2018.


30

Economic Factors and Next Year’s Budgets and Rates Regional, national, and global economies play a major role in the City’s finances and economic growth. In 2017, the unemployment rate in the Chicago metropolitan area was 4.9%, marking the lowest rate since the Recession. Across the Chicagoland area and in Chicago, home prices continued to rise. In Chicago, the median home prices increased to $285,000, which is a 4.8% increase over the 2016 median sale price. Additionally, the number of homes sold in Chicago increased by 1.8%. Tourism and business travel to Chicago increased by 2.5% over 2016 levels, reaching 55.2 million visitors in 2017. The Chicago tourism industry supported an estimated 146,500 jobs in 2017, which is a 17.0% increase since 2011. The City’s 2018 General Fund Budget, totaling $3,852.5 million, was approved by a 47 to 3 vote of City Council on November 21, 2017. The 2018 budget closed an operating budget deficit of $114.2 million through a combination of reforms, spending cuts, and revenue growth. The 2018 budget includes a $5 million deposit into the City’s operating liquidity fund, which is part of the City’s practice of adding to its budget stabilization funds. Requests for Information This financial report is designed to provide a general overview of the City’s finances for all of those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Chicago Department of Finance.

31

Exhibit 1CITY OF CHICAGO, ILLINOISSTATEMENT OF NET POSITIONDecember 31, 2017(Amounts are in Thousands of Dollars)

ASSETS AND DEFERRED OUTFLOWS$ 851,501 $ 512,065 $ 1,363,566

1,538,985 468,751 2,007,736 Receivables (Net of Allowances):

1,853,000 - 1,853,000 1,097,912 442,422 1,540,334

(66,586) 66,586 - 25,945 23,043 48,988

Restricted Assets:73,805 2,056,257 2,130,062

598,083 2,471,906 3,069,989 654,911 - 654,911

- 15,294 15,294 11,824 56,060 67,884

Capital Assets:Land, Art, and Construction in Progress ............................... 2,140,851 2,902,437 5,043,288 Other Capital Assets, Net of Accumulated Depreciation ....... 6,604,739 13,535,085 20,139,824

8,745,590 16,437,522 25,183,112 Total Assets .......................................................................... 15,384,970 22,549,906 37,934,876

4,089,870 1,194,900 5,284,770

Total Assets and Deferred Outflows ..................................... $ 19,474,840 $ 23,744,806 $ 43,219,646

LIABILITIES AND DEFERRED INFLOWS$ 884,321 $ 521,701 $ 1,406,022

289,714 314,782 604,496 1,091,201 403,360 1,494,561

99,240 257,370 356,610 - 24,319 24,319

Long-term Liabilities:256,608 481,816 738,424

37,154,875 18,289,500 55,444,375 Total Liabilities ...................................................................... 39,775,959 20,292,848 60,068,807

8,413,728 3,105,202 11,518,930

Total Liabilities and Deferred Inflows .................................... 48,189,687 23,398,050 71,587,737

NET POSITION(551,074) 3,866,056 3,314,982

Restricted for:444,911 201,929 646,840 623,866 28,165 652,031

1,347,294 - 1,347,294 - 196,869 196,869 - 185,874 185,874 - 169,999 169,999 - 57,060 57,060 - 28,125 28,125

(30,579,844) (4,387,321) (34,967,165) Total Net (Deficit)/Position .................................................... $ (28,714,847) $ 346,756 $ (28,368,091)

See notes to basic financial statements.

Airport Development Fund ........................................................Customer Facility Charges ........................................................

Unrestricted (Deficit) ..........................................................................

Capital Projects .........................................................................Debt Service ..............................................................................

Other Purposes .........................................................................

Special Taxing Areas ................................................................Passenger Facility Charges ......................................................Contractual Use Agreement ......................................................

Due in More Than One Year .....................................................

Net Investment in Capital Assets ......................................................

Deferred Inflows ................................................................................

Accrued Interest ................................................................................Accrued and Other Liabilities ............................................................Unearned Revenue ...........................................................................

Due Within One Year ................................................................

Derivative Instrument Liability ...........................................................

Investments ...............................................................................

Other Assets ......................................................................................

Total Capital Assets ..................................................................

Voucher Warrants Payable ...............................................................

Deferred Outflows .............................................................................

Interest Receivable ...................................................................Cash and Investments with Escrow Agent ................................

Primary GovernmentGovernmental Business-type

TotalActivitiesActivities

Accounts .....................................................................................Internal Balances ...............................................................................Inventories .........................................................................................

Cash and Cash Equivalents ......................................................

Cash and Cash Equivalents ..............................................................Investments .......................................................................................

Property Tax ................................................................................

32

Exhibit 2CITY OF CHICAGO, ILLINOISSTATEMENT OF ACTIVITIESYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

Functions/Programs

Primary GovernmentGovernmental Activities:

General Government ........................................................... $ 2,914,655 $ 521,232 Public Safety ........................................................................ 3,636,102 194,586 Streets and Sanitation .......................................................... 247,836 95,180 Transportation ...................................................................... 414,044 66,994 Health ................................................................................... 124,090 6,881 Cultural and Recreational ..................................................... 121,483 15,407 Interest on Long-term Debt .................................................. 722,008 -

8,180,218 900,280

Business-type Activities:Water ................................................................................... 581,642 759,014 Sewer ................................................................................... 293,047 357,623 Chicago Midway International Airport ................................... 284,974 244,073 Chicago-O'Hare International Airport ................................... 1,256,665 1,167,089 Chicago Skyway ................................................................... 8,506 -

2,424,834 2,527,799

$ 10,605,052 $ 3,428,079


Total Business-type Activities ................................................

Total Primary Government ........................................................

Total Governmental Activities ................................................

Expenses Charges for ServicesFines and

Licenses, Permits,

33

Program Revenues

$ 332,688 $ - $ (2,060,735) $ - $ (2,060,735) 40,708 - (3,400,808) - (3,400,808)

- - (152,656) - (152,656) - 205,505 (141,545) - (141,545)

88,915 - (28,294) - (28,294) 10,903 - (95,173) - (95,173)

- - (722,008) - (722,008) 473,214 205,505 (6,601,219) - (6,601,219)

- - - 177,372 177,372 - 6,419 - 70,995 70,995 - 31,556 - (9,345) (9,345) - 82,001 - (7,575) (7,575) - - - (8,506) (8,506) - 119,976 - 222,941 222,941

$ 473,214 $ 325,481 (6,601,219) 222,941 (6,378,278)

General RevenuesTaxes:

1,327,236 - 1,327,236 609,205 - 609,205 344,911 - 344,911 476,329 - 476,329 497,965 - 497,965 605,548 - 605,548 253,140 - 253,140 171,742 - 171,742

Grants and Contributions not Restricted to762,009 - 762,009 87,741 53,114 140,855

(28,583) (18,711) (47,294) 249,173 49,287 298,460

2,215 (2,215) - 5,358,631 81,475 5,440,106

(1,242,588) 304,416 (938,172) (27,472,259) 42,340 (27,429,919)

$ (28,714,847) $ 346,756 $ (28,368,091) Net Position - Beginning .....................................Net Position - Ending ..........................................

Specific Programs .........................................

Miscellaneous ..................................................

Total General Revenues and Transfers ........ Change in Net Position ........................

Unrestricted Investment Earnings ...................

Transfers ............................................................

Loss on Disposal and Sale of Capital Assets ..

Property Tax ..................................................Utility Tax ......................................................

Other Taxes ..................................................

Sales Tax ......................................................Transportation Tax ........................................Transaction Tax ............................................Special Area Tax ...........................................Recreation Tax ..............................................

Net (Expense) Revenue and Changes in Net PositionPrimary Government

GovernmentalActivities

Business-typeActivities

Operating CapitalGrants and

Contributions TotalContributionsGrants and

34

Exhibit 3CITY OF CHICAGO, ILLINOISBALANCE SHEETGOVERNMENTAL FUNDSDecember 31, 2017(Amounts are in Thousands of Dollars)

ASSETS$ 3,500 $ - $ 476,754

170,423 91,884 774,514 Receivables (Net of Allowances):

- - 524,997 226,081 4,275 3,759 233,028 22,474 88,489 204,948 393,967 - 25,945 - -

- 3,218 - - - - - - - - 3,267 -

$ 863,925 $ 519,085 $ 1,868,513

LIABILITIES, DEFERRED INFLOWS AND FUND BALANCELiabilities:

$ 214,162 $ 160,258 $ 55,640 - - - - - -

185,342 253,145 1,581 139,158 6,099 4,408 33,529 - - 1,405 97,835 -

573,596 517,337 61,629

1,968 243,150 459,590

Fund Balance:25,945 - -

- 7,438 1,347,294 - - -

106,900 - - 155,516 (248,840) - 288,361 (241,402) 1,347,294

$ 863,925 $ 519,085 $ 1,868,513


Deferred Inflows ...........................................................................

Unassigned ............................................................................

Total Liabilities, Deferred Inflows and Fund Balance ..........Total Fund Balance .............................................................

Assigned .................................................................................

Nonspendable ........................................................................

Cash and Cash Equivalents ..........................................................

General Grantsand Local

SpecialTaxing

Due To Other Funds ...............................................................

Federal, State

Areas

Restricted ...............................................................................

Voucher Warrants Payable ....................................................

Committed ..............................................................................

Due From Other Funds .................................................................

Other Assets ..................................................................................

Property Tax ...........................................................................Accounts .................................................................................

Restricted Investments ..................................................................

Accrued Interest .....................................................................

Accrued and Other Liabilities .................................................

Restricted Cash and Investments with Escrow Agent ...................

Due From Other Governments ......................................................

Restricted Cash and Cash Equivalents .........................................

Investments ...................................................................................

Total Assets .........................................................................

Total Liabilities .....................................................................

Bonds, Notes and Other Obligations Payable - Current .........

Unearned Revenue ................................................................

Inventories .....................................................................................

Claims Payable .......................................................................

35

STSCDebt

Service

$ - $ 36,520 $ 325 $ 115,556 $ 193,139 $ 25,707 $ 851,501 - 89,283 - 322,283 - 90,598 1,538,985

- 498,833 - - 806,220 22,950 1,853,000 5,182 12,564 26,034 2,263 496 178,752 459,406

30,940 412 769,064 19,453 - 100,608 1,264,468 - 2,960 - - - 36,631 638,506 - - - - - - 25,945

34,089 - - - - 36,498 73,805 598,083 - - - - - 598,083

- 591,587 - - - 63,324 654,911 - - - - - - 3,267

$ 668,294 $ 1,232,159 $ 795,423 $ 459,555 $ 999,855 $ 555,068 $ 7,961,877

$ 7 $ - $ 356 $ 52,300 $ 194,159 $ 199,882 $ 876,764 - 81,297 - - - - 81,297 - 288,919 - - - 795 289,714 - 769,064 - 59,501 123,896 62,421 1,454,950 - - - 1,754 - 6,930 158,349 - - - - - - 33,529 - - - - - - 99,240

7 1,139,280 356 113,555 318,055 270,028 2,993,843

1,513,194 421,872 - - 681,800 24,502 3,346,076

- - 769,064 - - - 795,009 - - 26,003 346,000 - 176,759 1,903,494

668,287 - - - - 122,202 790,489 - - - - - - 106,900

(1,513,194) (328,993) - - - (38,423) (1,973,934) (844,907) (328,993) 795,067 346,000 - 260,538 1,621,958

$ 668,294 $ 1,232,159 $ 795,423 $ 459,555 $ 999,855 $ 555,068 $ 7,961,877

Amounts reported for governmental activities in the statement of net position are different because:8,745,590

Other long-term assets are not available to pay for current-period1,832,882

Bond issuance costs that are expensed in statement of revenues, expenditures and changes in fund balances8,557

Certain liabilities, including bonds payable, and deferred outflows are not due and payable(40,923,834)

$ (28,714,847) in the current period and therefore are not reported in the funds .................................................................................................

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds ................

expenditures and therefore are recorded as deferred inflows in the funds ...................................................................................

but reported as other assets in the statement of activities ............................................................................................................

ConcessionCommunity

Developmentand Improvement

ServiceBond, NoteRedemptionand

Reserve

TotalGovernmental Governmental

FundsProjects Funds

Nonmajor

Pension

Net position of governmental activities ..........................................................................................................................................

and Interest

36

Exhibit 4CITY OF CHICAGO, ILLINOISSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

SpecialTaxingAreas

Revenues:$ - $ - $ -

438,979 - - 229,861 - - 274,999 - - 388,236 - - 270,499 - - 434,218 - -

- - 491,310 253,140 - - 146,991 - -

2,514 703,251 - 347,738 - - 133,500 - - 344,925 - -

6,978 - 20,344 189,802 - 24 97,079 - 1,626

3,559,459 703,251 513,304

Expenditures:Current:

929,471 346,562 375,399 30,083 93,052 -

2,228,705 54,656 426 197,491 - - 50,069 163,270 60,633

- 15,659 - - - - - 350 - - 48,174 -

Debt Service:6,145 - 3,118

12,894 - -

3,454,858 721,723 439,576

104,601 (18,472) 73,728

Continued on following pages.

Federal,

Local State and

Property Tax ...............................................Utility Tax ....................................................

General Grants

Sales Tax (Local) .......................................Transportation Tax .....................................State Income Tax .......................................

Transaction Tax .........................................Special Area Tax ........................................

Other Taxes ................................................Recreation Tax ...........................................

State Sales Tax ..........................................

Federal/State Grants ..................................Internal Service ..........................................Licenses and Permits .................................Fines ...........................................................Investment Income .....................................Charges for Services ..................................Miscellaneous .............................................

Total Revenues .....................................

Other ..........................................................

General Government ..................................Health .........................................................Public Safety ...............................................Streets and Sanitation ................................

Revenues Over (Under) Expenditures ..

Capital Outlay ...................................................

Principal Retirement ...................................Interest and Other Fiscal Charges .............

Total Expenditures ................................

Transportation ............................................Cultural and Recreational ...........................Employee Pensions ....................................

37

$ - $ 472,547 $ - $ - $ 740,019 $ - $ 1,212,566 - 22,327 - - - 143,103 604,409 - 38,816 11,221 - - 65,013 344,911 - 13,245 - - - 188,085 476,329 - - - - - - 388,236 - - 14,713 - - 86,047 371,259 - - - - - 63,747 497,965 - - - - - 21,219 512,529 - - - - - - 253,140 - - - - - 24,751 171,742 - - - - - - 705,765 - - - - - 33,664 381,402 - 2,616 - - - - 136,116 - - - - - 18,929 363,854

49,113 1,990 - 6,083 54 3,178 87,740 - - - - - 51,001 240,827

21,033 12,187 - 12,302 82,129 22,817 249,173

70,146 563,728 25,934 18,385 822,202 721,554 6,997,963

7 - - 1,350 - 340,437 1,993,226 - - - - - - 123,135 - - - 45,143 - 4,743 2,333,673 - - - - - 44,734 242,225 - - - - - 104,850 378,822 - - - - - 87,414 103,073 - - - - 931,618 - 931,618 - - - - - 394 744 - - - 164,627 - 62,591 275,392

- 283,857 - - - 60,825 353,945 - 571,925 6,467 - - 18,308 609,594

7 855,782 6,467 211,120 931,618 724,296 7,345,447

70,139 (292,054) 19,467 (192,735) (109,416) (2,742) (347,484)

and InterestRedemptionBond, NoteService

Developmentand

ImprovementService

ConcessionTotal

GovernmentalSTSCDebt

Funds

NonmajorGovernmental

Fundsand Reserve Projects Pension

Community

38

Exhibit 4 - ConcludedCITY OF CHICAGO, ILLINOISSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

Other Financing Sources (Uses):$ - $ 19,977 $ -

- - - - - - - - - - - -

180,227 - 12,042 (268,263) - (48,295)

(88,036) 19,977 (36,253)

16,565 1,505 37,475 269,582 (242,907) 1,309,819

2,214 - -

$ 288,361 $ (241,402) $ 1,347,294


SpecialTaxingAreas

Local State andFederal,

General

Issuance of Debt .............................................

Transfers In .....................................................

Premium/(Discount) ........................................Payment to Refunded Bond Escrow Agent .....

Issuance of Line of Credit ...............................

Grants

Change in Inventory .............................................

Fund Balance, End of Year ..................................

Transfers Out ..................................................

Total Other Financing (Uses) Sources ........

Net Changes in Fund Balance .............................Fund Balance, Beginning of Year ........................

Proceeds from Sale of Assets .......................

39

$ - $ 553,936 $ 743,735 $ 471,158 $ - $ 135,166 $ 1,923,972 - 77,203 - - - - 77,203 - (11,953) 33,917 (9,803) - - 12,161 - (971,766) - - - - (971,766) - - - 15,225 - - 15,225 - 125,023 - 17,128 109,416 145,902 589,738

(21,060) (77,203) (2,052) (5) - (170,645) (587,523)

(21,060) (304,760) 775,600 493,703 109,416 110,423 1,059,010

49,079 (596,814) 795,067 300,968 - 107,681 711,526 (893,986) 267,821 - 45,032 - 152,857 908,218

- - - - - - 2,214

$ (844,907) $ (328,993) $ 795,067 $ 346,000 $ - $ 260,538 $ 1,621,958

and ReserveConcession

Service

FundsGovernmental

TotalNonmajorGovernmental

Funds

Community

Bond, NoteRedemptionand Interest Projects

Improvementand

DevelopmentSTSCDebt

Service Pension

40

This Page Intentionally Left Blank

41

Exhibit 5CITY OF CHICAGO, ILLINOISRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGESIN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIESYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

$ 711,526

Governmental funds report capital outlays as expenditures. However, inthe statement of activities the cost of those assets is allocated over theirestimated useful lives and reported as depreciation expense. This is theamount by which capital outlays exceeded depreciation in the current

127,759

In the Statement of Activities, gain or loss on disposal and sale of capital assets is reported,(43,808)

Revenues in the statement of activities that do not provide current financial 193,341

Bond proceeds provide current financial resources to governmental funds,but issuing debt increases long-term liabilities in the statement of net

(802,641)

Certain expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as

(1,428,765)

$ (1,242,588)


Amounts reported for governmental activities in the statement of activities are different from amounts reported for governmental funds in the statement of revenues, expenditures and changes in fund balances because:

expenditures in governmental funds ......................................................................................

Change in the net position of governmental activities ............................................................

Net change in fund balances - total governmental funds .......................................................

period ......................................................................................................................................

resources are not reported as revenues in the funds .............................................................

assets. This is the amount by which proceeds exceeded repayments .................................

whereas in the governmental funds, the entire proceeds are recorded .................................

42

Exhibit 6CITY OF CHICAGO, ILLINOISSTATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUALGENERAL FUND (BUDGETARY BASIS)Year Ended December 31, 2017(Amounts are in Thousands of Dollars)

Revenues:$ 437,020 $ 437,020 $ 438,979 $ 1,959

326,040 326,040 229,861 (96,179) 241,440 241,440 274,999 33,559 394,940 394,940 434,218 39,278 221,563 221,563 253,140 31,577 128,320 128,320 146,991 18,671 399,618 399,618 388,236 (11,382) 372,800 372,800 270,499 (102,301)

1,800 1,800 2,514 714 358,885 358,885 347,738 (11,147) 128,000 128,000 133,500 5,500 358,800 358,800 344,925 (13,875)

1,500 1,500 6,978 5,478 197,945 197,945 189,802 (8,143) 137,533 137,933 97,079 (40,854)

Budgeted Prior Years' Surplus37,000 53,000 - (53,000) 37,000 37,000 180,227 143,227

3,780,204 3,796,604 3,739,686 (56,918)

Expenditures: Current:

1,305,128 1,320,528 1,202,087 118,441 31,990 31,990 31,633 357

2,175,078 2,176,078 2,212,796 (36,718) 207,026 207,026 197,744 9,282 56,100 56,100 50,982 5,118

Debt Service:2,145 2,145 2,145 - 2,737 2,737 3,080 (343)

3,780,204 3,796,604 3,700,467 96,137

$ - $ - $ 39,219 $ 39,219


Utility Tax ...................................................Sales Tax ..................................................Transportation Tax ....................................Transaction Tax ........................................Recreation Tax ..........................................Other Taxes ..............................................State Income Tax ......................................State Sales Tax .........................................Federal/State Grants .................................Internal Service .........................................Licenses and Permits ...............................Fines ..........................................................Investment Income ....................................Charges for Services .................................Miscellaneous ............................................

and Reappropriations .............................Transfers In/Out ........................................

Total Revenues ......................................

General Government ................................Health ........................................................

Interest and Other Fiscal Charges ............

Total Expenditures .................................

Revenues Over Expenditures ................

Public Safety .............................................Streets and Sanitation ...............................Transportation ...........................................

Principal Retirement ..................................

BudgetOriginal

VarianceAmountsActualFinal

Budget

43

Exhibit 7CITY OF CHICAGO, ILLINOISSTATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUALPENSION FUND (BUDGETARY BASIS)Year Ended December 31, 2017(Amounts are in Thousands of Dollars)

Revenues:$ 839,083 $ 839,083 $ 740,019 $ (99,064)

- - 54 54 82,300 82,300 82,129 (171)

108,605 108,605 109,416 811

1,029,988 1,029,988 931,618 (98,370)

Expenditures:Current:City Contribution to - Municipal Employees'

266,988 266,988 256,127 10,861 City Contribution to - Laborers' and Retirement Board

36,000 36,000 35,142 858 City Contribution to -

500,000 500,000 439,805 60,195 City Contribution to -

227,000 227,000 200,544 26,456

1,029,988 1,029,988 931,618 98,370

$ - $ - $ - $ -


Employees' Annuity and Benefit Fund ......

Policemen's Annuity and Benefit Fund .....

Firemen's Annuity and Benefit Fund .........

Total Expenditures .......................................

Revenues Over Expenditures ...................

Property Taxes ...........................................

Other Revenue ...........................................Transfers In ...............................................

Total Revenues .........................................

Annuity and Benefit Fund ..........................

Original Final ActualBudget Budget Amounts Variance

Investment Income ......................................

44

Exhibit 8CITY OF CHICAGO, ILLINOISSTATEMENT OF NET POSITIONPROPRIETARY FUNDSDecember 31, 2017(Amounts are in Thousands of Dollars)

ASSETS AND DEFERRED OUTFLOWSCURRENT ASSETS:

$ 192,899 $ 55,338 $ 46,037 $ 217,206 $ 585 $ 512,065 330,238 102,703 5,009 30,026 775 468,751

Accounts Receivable (Net of189,169 105,155 19,369 83,660 11 397,364

285 - 97 430 - 812 36,670 22,238 1,583 39,257 - 99,748 22,068 975 - - - 23,043 68,025 107,660 85,740 785,667 - 1,047,092

120,846 108,324 - - - 229,170 527 1,638 - - - 2,165 - - - 2,028 - 2,028

960,727 504,031 157,835 1,158,274 1,371 2,782,238 NONCURRENT ASSETS:

- - 128,616 880,549 - 1,009,165 - 200,538 442,809 1,599,389 - 2,242,736 - - 2,033 11,096 - 13,129 - - 3,068 31,445 - 34,513 - - 29,707 14,539 - 44,246

2,962 1,299 612 5,030 9,616 19,519 Property, Plant, and Equipment:

6,858 560 116,475 892,248 12,609 1,028,750 Structures, Equipment and

5,184,483 3,102,022 1,685,956 9,432,232 490,817 19,895,510 (1,145,919) (614,866) (667,724) (3,672,833) (259,083) (6,360,425)

421,867 88,343 32,427 1,331,050 - 1,873,687 4,467,289 2,576,059 1,167,134 7,982,697 244,343 16,437,522

4,470,251 2,777,896 1,773,979 10,524,745 253,959 19,800,830 5,430,978 3,281,927 1,931,814 11,683,019 255,330 22,583,068

365,315 108,421 154,462 566,702 - 1,194,900 TOTAL ASSETS AND

$ 5,796,293 $ 3,390,348 $ 2,086,276 $ 12,249,721 $ 255,330 $ 23,777,968


DEFERRED OUTFLOWS .....................................

SewerInternational

O'HareInternational

Airport

Due from Other Funds ..........................................

Allowances) .....................................................

Investments ..........................................................Cash and Cash Equivalents .................................

Business-type Activities - Enterprise Funds Major Funds

TotalSkywayChicago

Chicago-Chicago-

DEFERRED OUTFLOWS .....................................

TOTAL NONCURRENT ASSETS: .......................TOTAL ASSETS ...................................................

Improvements ..................................................

Water

Investments - Restricted .......................................

Land ......................................................................

Other Assets .........................................................

Other Assets - Restricted .....................................

Cash and Cash Equivalents - Restricted ..............

Midway

Total Property, Plant and Equipment ...........Construction Work in Progress .............................Accumulated Depreciation ....................................

Airport

Inventories ............................................................

Interest Receivable ...............................................

Interest Receivable - Restricted ...........................

Other Assets - Restricted .....................................

TOTAL CURRENT ASSETS ...............................

Cash and Cash Equivalents - Restricted ..............Investments - Restricted .......................................Interest Receivable - Restricted ...........................

Due from Other Governments - Restricted ...........

45

Exhibit 8CITY OF CHICAGO, ILLINOISSTATEMENT OF NET POSITIONPROPRIETARY FUNDS - ConcludedDecember 31, 2017(Amounts are in Thousands of Dollars)

LIABILITIES

CURRENT LIABILITIES:$ 29,219 $ 3,728 $ 23,867 $ 73,793 $ - $ 130,607

12,482 8,904 9,537 2,224 15 33,162 260,725 38,597 2,743 8,984 - 311,049

17,128 13,671 3,874 222,697 - 257,370 Current Liabilities Payable from

189,397 215,984 85,387 785,667 - 1,276,435

TOTAL CURRENT LIABILITIES ........... 508,951 280,884 125,408 1,093,365 15 2,008,623

NONCURRENT LIABILITIES:Revenue Bonds and

2,525,481 1,982,359 1,842,175 8,783,253 - 15,133,268 - - - 171,901 - 171,901

1,041,779 392,602 290,610 1,259,340 - 2,984,331 - - 24,319 - - 24,319

1,577 - 1,991 - - 3,568 TOTAL NONCURRENT LIABILITIES ... 3,568,837 2,374,961 2,159,095 10,214,494 - 18,317,387 TOTAL LIABILITIES ............................. 4,077,788 2,655,845 2,284,503 11,307,859 15 20,326,010

634,009 246,802 108,774 525,920 1,589,697 3,105,202

NET POSITION:Net Investment

1,949,409 735,564 (180,803) 1,117,543 244,343 3,866,056 Restricted Net Position:

- - 8,750 19,415 - 28,165 527 116,376 41,292 43,734 - 201,929 - - 4,035 192,834 - 196,869 - - 34,541 151,333 - 185,874 - - - 169,999 - 169,999 - - 31,573 25,487 - 57,060 - - 7,285 20,840 - 28,125

(865,440) (364,239) (253,674) (1,325,243) (1,578,725) (4,387,321) TOTAL NET POSITION/(DEFICIT) ....... $ 1,084,496 $ 487,701 $ (307,001) $ 415,942 $ (1,334,382) $ 346,756


Business-type Activities - Enterprise Funds

Voucher Warrants Payable ..........................Due to Other Funds ......................................Accrued and Other Liabilities .......................

Major Funds

Water Sewer Airport

Chicago-

Skyway

Other ........................................................Unrestricted Net (Deficit) ..............................

Debt Service .............................................Capital Projects ........................................Passenger Facility Charges ......................Contractual Use Agreement ....................

Customer Facility Charge .........................Air Development Fund ..............................

O'HareInternational

AirportChicago

in Capital Assets .......................................

Net Pension Liability .....................................

DEFERRED INFLOWS ................................

Other ............................................................

Total

Unearned Revenue ......................................

International

Restricted Assets ......................................

Line of Credit and TIFIA Loan Payable ........Commercial Paper Payable ..........................

MidwayChicago-

Derivative Instrument Liability ......................

46

Exhibit 9CITY OF CHICAGO, ILLINOISSTATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITIONPROPRIETARY FUNDSYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

Operating Revenues:Charges for Services - Net of Provision forDoubtful Accounts of $20,203 for Water

$ 729,644 $ 356,473 $ 95,416 $ 650,974 $ - $ 1,832,507 - - 99,609 325,205 - 424,814

29,370 1,150 - - - 30,520

759,014 357,623 195,025 976,179 - 2,287,841

Operating Expenses:122,954 12,591 48,185 205,957 - 389,687

55,844 2,466 24,344 101,798 - 184,452 1,300 66,541 44,506 95,310 - 207,657

22,603 - - - - 22,603 71,088 48,171 51,443 262,331 8,506 441,539

- - - 18,711 - 18,711 84,737 47,522 - - - 132,259

107,095 34,397 40,211 145,992 - 327,695 7,694 - 13,719 103,437 - 124,850

473,315 211,688 222,408 933,536 8,506 1,849,453

285,699 145,935 (27,383) 42,643 (8,506) 438,388

Nonoperating Revenues (Expenses):10,248 4,348 5,722 32,771 25 53,114

(108,327) (81,359) (61,277) (313,202) - (564,165) - - 40,918 151,816 - 192,734 - - 8,130 39,094 - 47,224 - - (1,289) (16,445) - (17,734) - - - (12,193) - (12,193)

3,245 6 475 26,860 18,701 49,287

Total Nonoperating Revenues(94,834) (77,005) (7,321) (91,299) 18,726 (251,733)

(2,095) (120) - - - (2,215) - 6,419 31,556 82,001 - 119,976

188,770 75,229 (3,148) 33,345 10,220 304,416

Net Position (Deficit) - 895,726 412,472 (303,853) 382,597 (1,344,602) 42,340

$ 1,084,496 $ 487,701 $ (307,001) $ 415,942 $ (1,334,382) $ 346,756


Capital Grants ....................................................

Noise Mitigation Costs ...................................

Loss on Capital Asset Disposals ...................Depreciation and Amortization .......................

Repairs and Maintenance ..............................

Passenger Facility Charges ...........................

Other ..............................................................

Pension Expense ...........................................

Contractual Services ......................................

Commodities and Materials ............................

Customer Facility Charges .............................

Transfers Out .....................................................

Investment Income (Loss) ..............................

Operating Income (Loss) ............................

Total Operating Expenses ..........................

Cost of Issuance ............................................

Interest Expense ............................................

Airport Skyway

Chicago-

Major Funds

Chicago-

WaterChicagoInternational

O'Hare

Net Position (Deficit) - End of Year ....................

Net Income (Loss) ......................................

(Expenses) ..........................................

MidwayInternational

Sewer Airport

Personnel Services ........................................

Total Operating Revenues .........................

Beginning of Year ...........................................

Total

Other ..............................................................

General Fund Reimbursements .....................


Rent ................................................................and $20,813 for Sewer ...................................

Other ..............................................................

47

Exhibit 10CITY OF CHICAGO, ILLINOISSTATEMENT OF CASH FLOWSPROPRIETARY FUNDSYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

Cash Flows from Operating Activities:$ 737,146 $ 358,600 $ 197,343 $ 1,003,818 $ - $ 2,296,907

(74,661) (29,299) (83,615) (307,547) (236) (495,358) (122,989) (51,950) (44,479) (187,117) - (406,535) (106,537) (63,423) (12,714) (85,131) - (267,805)

Cash Flows Provided By432,959 213,928 56,535 424,023 (236) 1,127,209

Cash Flows from Capital and Related Financing Activities:

655,495 506,380 - 2,404,756 - 3,566,631

(392,151) (165,650) (39,634) (818,606) - (1,416,041) - 6,419 3,147 101,937 - 111,503

(4,146) (5,394) (4,061) (17,839) - (31,440) - (240,400) - (615,843) - (856,243)

(578,857) (51,653) (25,770) (277,850) - (934,130) (132,476) (87,983) (82,336) (348,042) - (650,837)

- - 50,513 190,961 - 241,474 - - - - 79 79

Cash Flows (Used in) Provided By Capital(452,135) (38,281) (98,141) 619,474 79 30,996

Cash Flows from Non Capital Financing Activities:- - (1,289) (16,445) - (17,734) - - 475 778 - 1,253

Cash Flows Used in Non Capital - - (814) (15,667) - (16,481)

Cash Flows from Investing Activities:52,621 (174,695) 66,305 (488,302) 222 (543,849) 11,390 5,261 8,470 38,549 42 63,712

Cash Flows (Used in) Provided By64,011 (169,434) 74,775 (449,753) 264 (480,137)

Net (Decrease) Increase in Cash and44,835 6,213 32,355 578,077 107 661,587

216,089 156,785 228,038 1,305,345 478 1,906,735 $ 260,924 $ 162,998 $ 260,393 $ 1,883,422 $ 585 $ 2,568,322


Investing Activities .............................................

Cash Equivalents ......................................................

Financing Activities ............................................

Proceeds from Settlement Agreement ......................

and Related Financing Activities ........................

Proceeds from Issuance of Bonds/Commercial

Payments to Vendors ................................................

Payment to Refund Bonds ........................................

Received from Customers ........................................


Midway

Capital Grant Receipts ..............................................Bond Issuance Costs ................................................

Total

Payments to Employees ...........................................Transactions with Other City Funds ..........................

Sewer

Operating Activities ............................................

SkywayAirport

Interest Paid ..............................................................

Paper/IEPA Loans/TIFIA Loans/LOC .......................

Chicago-

International

Cash and Cash Equivalents, Beginning of Year ...........

Passenger and Customer Facility Charges ..............

Noise Mitigation Program ..........................................

Concessionaire Funds ..............................................

Principal Paid on Debt ..............................................

(Purchases) Sale of Investments, Net ......................Investment Income (Loss) .........................................

Cash and Cash Equivalents, End of Year ....................

Major Funds

ChicagoWater

Chicago-

Acquisition and Construction of Capital Assets .......................................................

AirportInternational

O'Hare

48

Exhibit 10 - ConcludedCITY OF CHICAGO, ILLINOISSTATEMENT OF CASH FLOWSPROPRIETARY FUNDSYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

Reconciliation of Operating Income to Cash Flows from Operating Activities:

$ 285,699 $ 145,935 $ (27,383) $ 42,643 $ (8,506) $ 438,388 Adjustments to Reconcile: 71,088 48,171 51,443 281,042 8,506 460,250

82,683 24,921 30,663 107,299 - 245,566 20,203 20,813 41 - - 41,057

Change in Assets and Liabilities:(41,041) (19,093) (3,324) (1,812) - (65,270)

(764) (4,766) 443 (7,406) - (12,493)

11,958 (1,127) (737) (19,066) - (8,972) Increase (Decrease) in Unearned Revenue

2,965 (944) 5,560 29,451 (236) 36,796 Increase in Inventories and

168 18 (171) (8,128) - (8,113)

Cash Flows from$ 432,959 $ 213,928 $ 56,535 $ 424,023 $ (236) $ 1,127,209

Supplemental Disclosure ofNoncash Items:

Capital asset additions in 2017have outstanding accounts payable

$ 66,176 $ 115,648 $ 18,330 $ 212,735 $ - $ 412,889


Pension Expense Other than Contribution ....................

ChicagoTotal

InternationalO'Hare

Chicago-

Airport


and accrued and other liabilities ....................................

Operating Activities ....................................................

Other Assets ..............................................................

and Other Liabilities ...................................................

Payable and Due to Other Funds .............................. (Decrease) Increase in Voucher Warrants(Increase) Decrease in Due From Other Funds ............(Increase) Decrease in Receivables ..............................

Skyway

Provision for Uncollectible Accounts .............................

Depreciation and Amortization and Impairment ............

Operating Income (Loss) ...................................................

Major Funds

Water Sewer Airport

MidwayChicago-

International

49

Exhibit 11CITY OF CHICAGO, ILLINOISSTATEMENT OF FIDUCIARY NET POSITIONFIDUCIARY FUNDSDecember 31, 2017(Amounts are in Thousands of Dollars)

ASSETS

$ 242,857 $ 110,080 8,899,948 109,443

- 10,617 - 91,101

1,086,904 8,511 123,896 -

198 - 553,047 -

$ 10,906,850 $ 329,752

$ 274 $ -

LIABILITIES

$ 284,285 $ 22,214 - 307,538

553,047 -

$ 837,332 $ 329,752

NET POSITION

10,069,792

$ 10,069,792


Total Net Position ...........................................................................

Total Assets ....................................................................................

Voucher Warrants Payable .....................................................................Accrued and Other Liabilities ..................................................................

Escrow Agent .......................................................................................

Restricted for Pension Benefits ...............................................................

Total Liabilities ...............................................................................

Cash and Investments with

Cash and Cash Equivalents ....................................................................

Securities Lending Collateral ...................................................................

Property Tax Receivable .........................................................................Accounts Receivable, Net .......................................................................Due From City .........................................................................................

Invested Securities Lending Collateral ....................................................

PensionTrust

Investments .............................................................................................

Agency

Property, Plant, Equipment and other .....................................................

Deferred Outflows ...........................................................................

50

Exhibit 12CITY OF CHICAGO, ILLINOISSTATEMENT OF CHANGES IN PLAN NET POSITIONFIDUCIARY FUNDS - PENSION TRUST FUNDSYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

ADDITIONS

Contributions:$ 302,551

1,020,156

Total Contributions .......................................... 1,322,707

Investment Income:Net Appreciation in

Fair Value of Investments ............................... 1,214,709 197,009 (43,427)

Net Investment Income ................................... 1,368,291

Securities Lending Transactions:7,448

(4,363)

Net Securities Lending Transactions .............. 3,085

Other Additions5,393

Total Additions ................................................. 2,699,476

DEDUCTIONS

2,099,213 18,473

Total Deductions ............................................. 2,117,686

Net Increase in Net Position ............................ 581,790

Net Position:

9,488,002

$ 10,069,792


Total

Employees ..............................................................City .........................................................................

Interest, Dividends and Other ................................

Beginning of Year ...................................................

End of Year ............................................................

Administrative and General ...........................................

Investment Expense ...............................................

Securities Lending Income .....................................Securities Lending Expense ...................................

OPEB Termination .................................................

Benefits and Refunds of Deductions .............................

CITY OF CHICAGO, ILLINOIS NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2017

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1) Summary of Significant Accounting Policies The City of Chicago (City), incorporated in 1837, is a “home rule” unit under State of Illinois law. The City has a mayor-council form of government. The Mayor is the Chief Executive Officer of the City and is elected by general election. The City Council is the legislative body and consists of 50 members, each representing one of the City’s 50 wards. The members of the City Council are elected through popular vote by ward for four-year terms. The accounting policies of the City are based upon accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB). Effective January 1, 2017, the City adopted the following GASB Statements: GASB Statement No. 80, Blending Requirements for Certain Component Units, an amendment of GASB

Statement No. 14 (“GASB 80”), amends the blending requirements for the financial statement presentation of component units of all state and local governments. GASB 80 was effective for the City for its year ended December 31, 2017. The adoption of this Statement had no impact on the City’s financial statements.

GASB Statement No. 82, Pension Issues, an amendment of GASB Statements No. 67, No. 68, and No. 73 (“GASB 82”), addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (Plan member) contribution requirements. GASB 82 was effective for the City for its year ended December 31, 2017. The adoption of this Statement adjusted the presentation of payroll-related measures in the required supplementary information, but did not have an impact on the City’s financial statements.

Other accounting standards that the City is currently reviewing for applicability and potential impact on the financial statements include:

GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (“GASB 75”), replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. GASB 75 will be effective for the City beginning with its year ending December 31, 2018. This Statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. In addition, this Statement details the recognition and disclosure requirements for employers with payables to defined benefit OPEB plans that are administered through trusts that meet the specified criteria and for employers whose employees are provided with defined contribution OPEB.

GASB Statement No. 83, Certain Asset Retirement Obligations – (“GASB 83”), addresses accounting and financial reporting for certain asset retirement obligations (AROs). A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets will have to recognize a liability based on the guidance in this statement. This Statement also requires disclosure of information about the nature of a government’s AROs, the methods and assumptions used for the estimates of the liabilities, and the estimated remaining useful life of the associated tangible capital assets. GASB 83 will be effective for the City beginning with its year ending December 31, 2019.

GASB Statement No. 84, Fiduciary Activities – (“GASB 84”) will improve the guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. GASB 84 will be effective for the City beginning with its year ending December 31, 2019.

GASB Statement No. 85, Omnibus – (“GASB 85”) the objective of this Statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. The statement addresses various miscellaneous issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (OPEB). GASB 85 will be effective for the City


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beginning with its year ending December 31, 2018.

GASB Statement No. 86, Certain Debt Extinguishment Issues – (“GASB 86”) establishes accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources (resources other than the proceeds of refunding debt) are placed in an irrevocable trust for the sole purpose of extinguishing debt. GASB 86 will be effective for the City beginning with its year ending December 31, 2018. GASB Statement No. 87, Leases – (“GASB 87”) will improve accounting and financial reporting for leases by governments by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. The Statement will establish a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. This Statement will increase the usefulness of governments’ financial statements by requiring reporting of certain lease liabilities that are currently not reported. GASB 87 will be effective for the City beginning with its year ending December 31, 2020. GASB Statement No. 88, Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements – (“GASB 88”) will improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. GASB 88 will be effective for the City beginning with its year ending December 31, 2019.

a) Reporting Entity – The financial reporting entity consists of the City and its component units, which are legally separate organizations for which the City is financially accountable. The financial statements for the City have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), applicable to governmental units, as required by the Municipal Code of Chicago (Code). The City includes the Chicago Public Library.

The City’s financial statements include the following legal entities as fiduciary trust funds: The Municipal Employees’ Annuity and Benefit Fund of Chicago is governed by a five-member board: three members are elected by plan participants and two are members ex-officio. The Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago is governed by an eight-member board: two members are elected by plan participants, two are members ex-officio, two members are appointed by the City Department of Human Resources, one member is elected by retired plan participants and one member is elected by the local labor union. The Policemen’s Annuity and Benefit Fund of Chicago is governed by an eight-member board: four members are elected by plan participants and four are appointed by the Mayor. The Firemen’s Annuity and Benefit Fund of Chicago is governed by an eight-member board: four members are elected by plan participants and four are members ex-officio. Financial statements for each of these four pension plans (collectively, “Pension Plans”) may be obtained at the respective Pension Plans’ offices. Blended Component Unit

The City’s financial statements also include, as a blended component unit, the Sales Tax Securitization Corporation (the “STSC”). The STSC is a special purpose not-for-profit corporation incorporated under the provisions of the General Not-For-Profit Corporation Act of 1986 of the State of Illinois (805 ILCS 105) (the


53

“State”), as amended, and organized in accordance with an ordinance adopted by the City of Chicago City Council on October 11, 2017. The STSC is a non-stock corporation, has no members, and is governed by a board of directors (the “Board”). Except as described in the following sentence, the Board has five voting directors all of whom are officials of the City. The STSC’s Bylaws require the vote of an additional “independent director” as a condition to taking certain actions. The independent director would be appointed by the Mayor of the City prior to any such actions.

Pursuant to a sale agreement authorized by Division 13 of Article 8 of the Illinois Municipal Code, in 2017 the City entered into an Assignment, Purchase and Sale Agreement (“Sale Agreement”) with the STSC under which the City sold its right, title and interest in and to certain sales tax revenues collected by the State (the “Sales Tax Revenues”). The Sales Tax Revenues consist of (a) revenues resulting from collection of three separate taxes (collectively, the “Home Rule Sales Tax Revenues”) imposed by the City pursuant to its home rule powers and authority granted by State statute; and (b) revenues resulting from the collection of four separate taxes (collectively, the “Local Share Sales Tax Revenues”) imposed by the State. In exchange for selling its right, title and interest in the Sales Tax Revenues, the City received a residual certificate which represents the City’s ownership interest in excess Sales Tax Revenues to be received by the STSC to pay debt service requirements of any outstanding obligations and administrative costs during the term of the Sale Agreement. The Sale Agreement is effective until there are no secured obligations outstanding for the STSC.

On December 14, 2017, the STSC issued $743.7 million of bonds (the “2017 Bonds”) to provide funds for the STSC to use, along with the proceeds of any additional bonds issued by the STSC. The proceeds from the 2017 Bonds were applied by the City to refund all of the outstanding City of Chicago Sales Tax Revenue Bonds and refund certain of the City’s outstanding general obligation bonds.

The STSC provides benefits exclusively to the City, and as a result, is presented as a blended component unit of the City.

The City reports the General Fund of the STSC as a non-major special revenue fund and the Debt Service Fund of the STSC as a major debt-service fund. Complete financial statements of the STSC can be obtained at www.salestaxsecuritizationcorporation.com.

The City’s officials are responsible for appointing a voting majority of the members of the boards of other organizations, but the City’s accountability for these organizations does not extend beyond making appointments and no financial accountability or fiscal dependency exists between the City and these organizations. Therefore, the Chicago Park District, Chicago Public Building Commission, Chicago Public Schools, Community College District No. 508, Chicago Housing Authority and the Chicago Transit Authority are deemed to be related organizations.

b) Government-wide and fund financial statements - The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on user fees and charges for services. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identified with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns


54

in the fund financial statements. c) Measurement focus, basis of accounting, and financial statement presentation - The government-wide

financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 90 days of the end of the current fiscal period with the exception of property tax revenue, which is recorded as deferred inflows unless taxes are received within 60 days subsequent to year-end. Licenses and permits, charges for services and miscellaneous revenues are not considered to be susceptible to accrual and are recorded as revenues when received in cash. All other revenue items are considered to be measurable and available only when cash is received by the City. Expenditures generally are recorded when a liability is incurred, as under the accrual basis of accounting, except for interest and principal on long-term debt, the long-term portion of compensated absences, claims and judgments, and pension obligations.

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. Federal, State and Local Grants Fund accounts for the expenditures for programs, which include general government, health, public safety, transportation, aviation, cultural and recreational, and capital outlays. The majority of revenues are provided by several agencies of the Federal government, departments of the Illinois State government and City resources. Special Taxing Areas Fund accounts for expenditures for special area operations and maintenance and for redevelopment project costs as provided by tax levies on special areas. Service Concession and Reserve Fund accounts for monies committed for mid- and long-term uses. The Mid-term portion is subject to appropriation for neighborhood human infrastructure programs, health, and other initiatives, whereas the Long-term portion is committed for future budgetary and credit rating stabilization. These reserves were created as a result of the Skyway Lease and Parking Meter System transactions. The deferred inflows result from long-term concession and lease transactions whose proceeds are recognized as revenue over the term of the agreements. Bond, Note Redemption and Interest Fund accounts for the expenditures for principal and interest as provided by property tax, utility tax, sales tax, transportation tax, and investment income. STSC Debt Service Fund accounts for the expenditures for principal and interest as provided by sales tax revenues.

Community Development and Improvement Projects Funds account for proceeds of debt used to acquire property, finance construction, and finance authorized expenditures and supporting services for various activities. Pension Fund accounts for the City’s contribution to the City’s four Employees’ Annuity and Benefit Funds as provided by the tax levy and other sources of revenue, including the allocable share from Enterprise Funds and Special Revenue Funds.


55

Within the governmental fund types, fund balances are reported in one of the following classifications:

Nonspendable includes amounts that cannot be spent because they are either: (a) not in a spendable form; or (b) legally or contractually required to be maintained intact. Restricted includes amounts that are restricted to specific purposes, that is, when constraints placed on the use of resources are either: (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Committed includes amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority (i.e., City Council); to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint. The City’s highest level of decision-making authority is held by the City Council. The City Council passes Ordinances to commit their fund balances. Assigned includes amounts that are constrained by the City’s intent to be used for specific purposes, but that are neither restricted nor committed. Intent is expressed by: (a) the City Council itself; or (b) a body or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. The Budget Director or Comptroller has authority to assign amounts related to certain legal obligations outside of the appropriation process within the General Fund. Within the other governmental fund types (special revenue, debt service, and capital projects) resources are assigned in accordance with the established fund purpose and approved appropriation. Residual fund balances in these fund types that are not restricted or committed are reported as assigned. Unassigned includes the residual fund balance that has not been restricted, committed, or assigned within the General Fund and deficit fund balances of other governmental funds.

The City reports the following major proprietary funds as business-type activities:

Water Fund accounts for the operations of the Chicago Water System (Water). The Water system purifies and provides Lake Michigan water for the City and 125 suburbs. The Water Fund operates two water purification facilities with a combined output pumping capacity of 2,160 million gallons per day and 12 pumping stations with a combined pumping capacity of 3,661 million gallons per day. Sewer Fund accounts for the operations of the Wastewater Transmission System (Sewer). The Sewer system transports wastewater to the Metropolitan Water Reclamation District of Greater Chicago for processing and disposal. This service is provided for the residents and businesses of the City and certain suburban customers. Chicago Midway International Airport Fund records operations of Chicago Midway International Airport (Midway) that provides regional travelers with access to airlines that generally specialize in low-cost, point-to-point, origin and destination passenger services. Midway Airport is conveniently located 10 miles from downtown Chicago. Chicago-O’Hare International Airport Fund records operations of Chicago-O’Hare International Airport (O’Hare), the primary commercial airport for the City. The airlines serving the Airport operate out of four terminal buildings with a total of 185 gates as of December 31, 2017. Three domestic terminal buildings, having a total of 165 aircraft gates serve domestic flights and certain international departures. The International Terminal, with 20 aircraft gates and four hardstand positions, serves the remaining international departures and all international arrivals. Chicago Skyway Fund records operations of the Chicago Skyway (Skyway) which provides vehicle passage across the Calumet River, between the State of Indiana and the State of Illinois (State) through the operation of a tollway which consists of a 7.8-mile span connecting the Dan Ryan Expressway to the


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Indiana Toll Road. Facilities include a single toll plaza consisting of a central office, maintenance garage and toll collection area. In January 2005, the City entered into a long-term Concession and Lease Agreement of the Skyway, granting a private company the ability to operate and to collect toll revenue during the 99-year term of the agreement. The City received a one-time upfront payment of $1.83 billion.

Additionally, the City reports the following fiduciary funds:

Pension Trust Funds report expenditures for employee pensions as provided by employee and employer contributions and investment earnings.

Agency Funds account for transactions for assets held by the City as agent for certain activities or for various entities. Payroll deductions and special deposits are the primary transactions accounted for in these funds.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payment-in-lieu of taxes and other charges between the City’s water, sewer, airports and skyway funds. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include: (1) charges to customers or applicants for goods and services, or privileges provided, or fines; (2) operating grants and contributions; and (3) capital grants and contributions, including special assessments. General revenues include internally dedicated resources and taxes.

Certain indirect costs have been included as part of the program expenses reported for the various functional activities.

In the fund financial statements, proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water and sewer funds are charges to customers for sales and services. The airport funds’ principal operating revenues are derived from landing fees and terminal use charges as well as rents and concessions. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources, as they are needed. The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.

d) Assets, liabilities, deferred inflows, deferred outflows, and net position or equity

i) Cash, Cash Equivalents and Investments generally are held with the City Treasurer as required by the Code. Interest earned on pooled investments is allocated to participating funds based upon their average combined cash and investment balances. Due to contractual agreements or legal restrictions, the cash and investments of certain funds are segregated and earn and receive interest directly. The City uses separate escrow accounts in which certain tax revenues are deposited and held for payment of debt. The Code permits deposits only to City Council-approved depositories, which must be regularly organized state or national banks and federal and state savings and loan associations, located within the City, whose deposits are federally insured. Investments authorized by the Code include interest-bearing general obligations of the City, State and U.S. Government; U.S. Treasury bills and other noninterest-bearing general obligations of the U.S.


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Government purchased in the open market below face value; commercial paper and State and Local Government Series (SLGS), domestic money market funds regulated and in good standing with the Securities and Exchange Commission and tax anticipation warrants issued by the City. The City is prohibited by ordinance from investing in derivatives, as defined, without City Council approval. The City values its investments at fair value or amortized cost. U.S. Government securities purchased at a price other than par with a maturity of less than or equal to one year are reported at amortized cost. The City’s four retirement plans are authorized to invest in bonds, notes, and other obligations of the U.S. Government; corporate debentures and obligations; insured mortgage notes and loans; common and preferred stocks; stock options; real estate; and other investment vehicles as set forth in the Illinois Compiled Statutes. These investments are reported at fair value.

Repurchase agreements can be purchased only from banks and certain other institutions authorized to do business in the State. The City Treasurer requires that securities that are pledged to secure these agreements have a fair value equal to the cost of the repurchase agreements plus accrued interest. Investments generally may not have a maturity date in excess of thirty years from the date of purchase. Certain other investments are held in accordance with the specific provisions of applicable ordinances. Cash equivalents include certificates of deposit and other investments with maturities of three months or less when purchased. Deficit cash balances result in interfund borrowings from the aggregate of funds other than escrowed funds. Interest income and expense are generally not recognized on these interfund borrowings. State statutes, the City and the City’s Pension Plans’ policies permit lending securities to broker-dealers and other entities with a simultaneous agreement to return the collateral for the same securities in the future. Securities lent at year-end for cash collateral are presented as not categorized in the schedule of custodial credit risk; securities lent for securities collateral are classified according to the category for the collateral. Securities Lending by the Pension Plans - The State Statutes and the Board of Trustees permit the Pension Plans to lend its securities to broker-dealers and other entities with a simultaneous agreement to return collateral for the same securities in the future. The Plans’ custodians, acting as the lending agent, lends securities for collateral in the form of cash, U.S. Government obligations and irrevocable letters of credit equal to 102% of the fair value of domestic securities plus accrued interest and 105% of the fair value of foreign securities plus accrued interest. The Plan does not have the right to sell or pledge securities received as collateral unless the borrower defaults. All securities loans can be terminated on demand within a period specified in each agreement by either the Funds or the borrowers. The contracts with the Fund’s custodian require the securities lending agent to indemnify the Funds.

Municipal Employees’ - The average term of securities loaned was 75 days at December 31, 2017. The cash collateral is invested in tri-party repurchase agreements and bank deposits which had a weighted average maturity of 34 days at December 31, 2017.

Laborers’ Employees’ - The average term of securities loaned was 67 days at December 31, 2017. Cash collateral may be invested in a short-term investment pool, which had a weighted average maturity of 28 days at December 31, 2017.

Policemen’s Employees’ - The average term of the Fund’s loan was approximately 1 day as of December 31, 2017. Cash collateral was reinvested in indemnified repurchase agreements which had an interest sensitivity of 3.48 days at December 31, 2017.

Firemen’s Employees’ - The average term of securities loaned was 59 days in 2017. Cash collateral may be invested in a short-term investment pool, which had a weighted average maturity of 27 days at December 31, 2017.


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ii) Receivables and Payables activity between funds are representative of services rendered, outstanding at the end of the fiscal year, and are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” All trade and property tax receivables are shown net of an allowance for uncollectibles. The allowance is based on historical trends. The estimated value of services provided but unbilled at year-end has been included in receivables.

iii) Inventory includes government-wide inventories, which are stated at cost determined principally, using the average cost method. For proprietary funds, the costs of inventories are recorded as expenses when used (consumption method). Governmental fund inventories are accounted for using the purchases method and represent nonspendable resources because they do not represent expendable available financial resources.

iv) Restricted Assets include certain proceeds of the City’s enterprise fund revenue bonds, as well as certain resources set aside for their repayment. These assets are classified as restricted or committed in the basic financial statements because they are maintained in separate bank accounts and their use is limited by applicable bond covenants or specific City Council action. The Water and Sewer funds maintain Rate Stabilization Accounts where any net revenues remaining after providing sufficient funds for all required deposits in the bond accounts may be transferred upon the direction of the City to be used for any lawful purpose of the specific fund. The O’Hare and Midway funds maintain Passenger Facility Charge accounts as restricted as they are subject to Federal Aviation Administration regulation and approval, to finance specific eligible capital and debt related activities.

v) Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, bridges,

sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets, or a network of assets, with an initial cost of more than $5,000 (not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalization value of the assets constructed. The total interest expense (Governmental and Business Activities) incurred by the City during the current fiscal year was $1,265.3 million, of which $91.5 million was capitalized as part of the capital assets under construction projects in proprietary funds.

Property, plant, and equipment of the City are depreciated using the straight-line method, in the year subsequent to acquisition or when placed into service, over the following estimated useful lives:


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Utility plant...................................................................................... 25 - 100 yearsUtility structures and improvements............................................... 50 - 100 yearsBuildings and improvements.......................................................... 10 - 40 yearsAirport runways, aprons, tunnels, taxiways, and paved roads....... 30 yearsBridge infrastructure....................................................................... 10 - 40 yearsLighting infrastructure..................................................................... 25 yearsStreet infrastructure....................................................................... 10 - 25 yearsTransit infrastructure...................................................................... 25 - 40 yearsEquipment (vehicle, office, and computer) .................................... 5 - 20 years

The City has a collection of artwork and historical treasures presented for public exhibition and education that are being preserved for future generations. The proceeds from sales of any pieces of the collection are used to purchase other acquisitions. A portion of this collection is not capitalized or depreciated as part of capital assets.

vi) Deferred Outflows represent unamortized loss on bond refundings, the fair value of derivative instruments that are deemed to be effective hedges, differences between estimated and actual investment earnings related to pensions, changes in actuarial assumptions related to pensions and other pension related changes.

vii) Employee Benefits are granted for vacation and sick leave, workers’ compensation and health care. Unused vacation leave is accrued and may be partially carried over for one year. Sick leave is accumulated at the rate of one day for each month worked, up to a maximum of 200 days. Severance of employment terminates all rights to receive compensation for any unused sick leave. Sick leave pay is not accrued. Employee benefit claims outstanding, including claims incurred but not reported, are estimated and recorded in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Employees are eligible to defer a portion of their salaries until future years under the City’s deferred compensation plan created in accordance with Internal Revenue Code Section 457. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Third-party administrators who maintain the investment portfolio administer the Plan. The plan’s assets have been placed in trust accounts with the plan administrators for the exclusive benefit of participants and their beneficiaries and are not considered assets of the City. The City is subject to the State of Illinois Unemployment Compensation Act and has elected the reimbursing employer option for providing unemployment insurance benefits for eligible former employees. Under this option, the City reimburses the State for claims paid by the State. Expenditures for workers’ compensation are recorded when paid in the governmental funds. A liability for these amounts is recorded in the government-wide and proprietary fund financial statements.

viii) Judgments and claims are included in the government-wide financial statements and proprietary fund types. Uninsured claim expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. In the fund financial statements, expenditures for judgments and claims are recorded on the basis of settlements reached or judgments entered within the current fiscal year. Amounts that relate to deferred compensatory time and reserves for questioned costs are treated the same way.

ix) Long-term obligations are included in the government-wide financial statements and proprietary fund

types in the fund financial statements. Long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, as well as issuance costs, are deferred and


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amortized over the life of the related debt, except in the case of refunding debt transactions where the amortization period is over the term of the refunding or refunded debt, whichever is shorter.

The City enters into interest rate swap agreements to modify interest rates and/or cash flows on outstanding debt. For existing swaps, the net interest expenditures resulting from these arrangements are recorded as interest expense. The fair value of derivative instruments that are deemed to be effective is accounted for as deferred outflows. Derivative instruments that are deemed not effective are adjusted to fair value with the change in fair value recorded to investment earnings. Under certain bond ordinances adopted by the City Council, interest rate swaps and swaptions are authorized to be entered into by designated City officials in connection with certain bonds issued by the City. For swaps related to Midway Bonds, airline approval is also required before entering into a swap agreement. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received and discounts given on debt issued are reported as other financing sources or uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures. Certain debt obligations are to be paid from sales tax, motor fuel or special area taxes.

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s four pension plans and additions to/deductions from the City’s Pension Plans fiduciary net position have been determined on the same basis as they are reported by the Pension Plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The financial statements of the Plans are prepared using the accrual basis of accounting.

x) Deferred inflows represent amounts to be recognized as revenue on a straight line basis over the life of the related long-term lease and concession agreements and differences between projected and actual actuarial experience related to pensions, and other pension related changes. In the fund financials, grants that meet all of the eligibility criteria except for time availability and property taxes levied for a future period are also included in deferred inflows.

xi) Net Position in the government-wide statements is classified in three components:

(1) Net investment in capital assets - Consists of capital assets including restricted capital assets, net of

accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or any other borrowings that are attributable to the acquisition, construction, or improvement of those assets.

(2) Restricted net position - Consists of net position with constraints placed on the use either by external groups such as creditors, grantors, contributors, or laws or regulations of other governments, or are legally restricted through constitutional provisions or enabling legislation.

Restricted net position for business activities are provided in Exhibit 7, Statement of Net Position, Proprietary Funds.

(3) Unrestricted - All other net positions that do not meet the definition of “restricted” or “net investment in

capital assets.” As of December 31, 2017, the unrestricted net position represents a deficit.


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2) Reconciliation of Government-wide and Fund Financial Statements

a) Explanation of certain differences between the governmental funds balance sheet and the government-wide statement of net position. i) The governmental funds balance sheet includes a reconciliation between fund balance – total

governmental funds and net position - governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that “Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds.” The details of this $1,832.9 million are as follows (dollars in thousands):

Deferred inflows - property tax ............................................................ 1,582,968$ Deferred inflows - grants ..................................................................... 243,150 Deferred inflows - charges for services ............................................... 1,968 Deferred inflows - utility tax ................................................................. 4,796 Net adjustment to increase fund balance - total governmental funds

- to arrive at net position - governmental activities ........................... 1,832,882$

ii) Another element of that reconciliation explains that “Certain liabilities and deferred outflows, including

bonds payable, are not due and payable in the current period and therefore are not reported in the funds.” The details of this $40,923.8 million are as follows (dollars in thousands):

Long-term liabilities:Total bonds, notes and certificates payable .............................. (11,117,049)$ Pension benefits ..................................................................... (25,058,993) Other postemployment benefits ............................................... (187,641) Pollution remediation ............................................................... (35,044) Claims and judgments ............................................................. (1,012,756)

Total Long-term liabilities ......................................................... (37,411,483)

Accounts payable - infrastructure retainage ................................. (7,557) Bonds, notes and other obligations payable current ...................... 81,297 Deferred outflows-unamortized loss on refunding ......................... 177,493 Deferred outflows-pension costs ................................................. 3,912,377 Deferred inflows-pension ............................................................ (6,900,534) Accrued and other liabilities - compensated absences .................. (85,098) Accrued and other liabilities - pension payable to pension funds .... (690,329)

Net adjustment to reduce fund balance - totalgovernmental funds - to arrive at net position - governmental activities ............................................................ (40,923,834)$

b) Explanation of certain differences between the governmental funds’ statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities.

i) The governmental funds statement of revenues, expenditures, and changes in fund balances includes a

reconciliation between net changes in fund balances - total governmental funds and changes in net position - governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that “Governmental funds report capital outlays as expenditures. However, in the statements of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this $127.8 million are as follows (dollars in thousands):


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Capitalized asset expenditures ................................. 527,205$ Depreciation expense .............................................. (399,446) Net adjustment to increase net changes in fund

balances - total governmental funds - to arrive at changes in net position - governmental activities ..... 127,759$

ii) Another element of that reconciliation states that “Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position.” The details of this decrease of $802.6 million are as follows (dollars in thousands):

Proceeds of debt .................................................................................................. (1,923,972)$ Proceeds from line of credit .................................................................................. (77,203) (Premium) / Discount ............................................................................................ (12,161) Payment to refunded bond escrow agent ............................................................... 971,766 Principal retirement ............................................................................................... 353,945 Interest expense ................................................................................................... (115,016) Net adjustment to reduce net changes in fund balances - total

governmental funds - to arrive at changes in net position - governmental activities .. (802,641)$

Another element of that reconciliation states that “Certain expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds.” The details of this decrease of $1,428.8 million are as follows (dollars in thousands):

Claims and judgments .................................................. (70,134)$ Pension costs ............................................................. (1,341,837) Other post employment benefit liabilities ....................... (20,432) Pollution remediation .................................................... (1,843) Vacation ..................................................................... 3,267 Inventory .................................................................... 2,214

Net adjustment to reduce net changes in fundbalances - total governmental funds - to arrive at changes in net position - governmental activities ......... (1,428,765)$

3) Stewardship, Compliance and Accountability

a) Annual Appropriation Budgets are established for the General Fund and the Vehicle Tax, Pension, Chicago Public Library and certain Miscellaneous, Special Events, Tourism and Festivals nonmajor Special Revenue Funds, on a non-GAAP budgetary basis:

i) Prior to October 15, the Mayor submits to the City Council a proposed budget of expenditures and the

means of financing them for the next year.

ii) The budget document is available for public inspection for at least ten days prior to passage of the annual appropriation ordinance by the City Council, which is also required to hold at least one public hearing.

iii) Prior to January 1, the budget is legally enacted through passage of the appropriation ordinance.


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iv) Subsequent to the enactment of the appropriation ordinance, the City Council has the authority to make necessary adjustments to the budget, which results in a change in total or individual appropriations. The legal level of budgetary control is designated in the budget by object grouped by purpose.

v) All annual appropriations unused and unencumbered lapse at year-end. Encumbered appropriations are

carried forward to the following year. Project-length financial plans are adopted for Capital Project Funds. Appropriations for Debt Service Funds are established by bond ordinance.

b) Reconciliation of GAAP Basis to Budgetary Basis - The City’s budgetary basis of accounting used for

budget vs. actual reporting differs from GAAP. For budgetary purposes, encumbrances are recorded as expenditures but are included in “Unassigned” fund balance for GAAP purposes. For budgetary purposes, proceeds of long-term debt and transfers in are classified as revenues. For budgetary purposes prior years’ resources used to cover current year budgetary expenditures are recorded as revenues. For GAAP purposes, proceeds of long-term debt and transfers out are treated as other financing sources. Provision for doubtful account expenditures are not budgeted. A reconciliation of the different basis of revenue and expenditure recognition for the year ended December 31, 2017 is as follows (dollars in thousands):

GeneralFund

Revenues, GAAP Basis .................................. 3,559,459$ Add:

Transfers In ................................................ 180,227 Revenues, Budgetary Basis ............................ 3,739,686$

Expenditures, GAAP Basis ............................. 3,454,858$ Add:

Transfers Out ............................................. 268,263 Encumbered in 2017.................................... 16,857

Deduct:Payments on Prior Years' Encumbrances ..... (24,511) Payments on Prior Years' Assignments ........ (15,000)

Expenditures, Budgetary Basis ....................... 3,700,467$

c) Individual Fund Deficits include the Chicago Skyway Fund, an Enterprise Fund, which has a fund deficit of $1,334.4 million which management anticipates will be funded through recognition of deferred inflows. Midway International Airport Fund has a fund deficit of $307.0 million which will be funded through future revenues. Federal State and Local Grants, a governmental fund, has a deficit of $241.4 million and will be funded by the recognition of deferred grant inflows and unearned revenue. The Service Concession and Reserve Fund, a Special Revenue Fund, has a deficit fund balance of $844.9 million which will be funded through the recognition of deferred inflows. The Bond, Note Redemption and Interest Fund, a Debt Service Fund, has a deficit fund balance of $329.0 million which will be funded through the amortization of the deferred inflow associated with the City’s sale of sales tax revenues to the STSC. The STSC is a blended component unit and for presentation purposes deferred inflows have been reclassified as internal balances.


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4) Restricted and Unrestricted Cash, Cash Equivalents and Investments

a) Investments As of December 31, 2017, the City had the following Investments (dollars in thousands):

Investment Type

Less Than 1 1-5 6-10 More Than 10 TotalCity Funds

U.S. Treasuries ............................. 312,630$ 4,925$ -$ -$ 317,555$ U.S. Agencies* .............................. 726,748 656,544 9,426 - 1,392,718 Commercial Paper ......................... 1,250,365 - - - 1,250,365 Corporate Bonds ........................... 136,926 548,752 513,464 281,912 1,481,054 Corporate Equities ........................ 795 - - - 795 Certificates of Deposit and

Other Short-term ........................ 2,645,371 - - - 2,645,371 Municipal Bonds ............................ 122,058 417,873 240,088 354,166 1,134,185 State and Local Government Series .................... 127,134 151,670 - - 278,804 Total City Funds ............................ 5,322,027$ 1,779,764$ 762,978$ 636,078$ 8,500,847$

*U.S. Agencies include investments in government-sponsored enterprises such as Federal National Mortgage Association, Federal Home Loan Banks, and Federal Home Loan Mortgage Corporation.

Included in the table above are investments held with escrow agent.

Pension Trust FundsU.S. and Foreign

Government Agencies ............... 30,274$ 202,007$ 153,378$ 309,289$ 694,948$ Corporate Bonds ........................... 765,765 387,022 290,255 206,566 1,649,608 Corporate Equities ........................ 5,062,007 - - - 5,062,007 Pooled Funds ................................ 128,774 20,915 - - 149,689 Real Estate ................................... 569,995 - - - 569,995 Securities Received from

Securities Lending ..................... 553,047 - - - 553,047 Venture Capital ............................. 463,693 - - - 463,693 Certificates of Deposit and

Other Short-term ........................ 292,872 - - - 292,872 Derivatives ................................... 27,924 - - - 27,924 Other ............................................. 31,155 126,055 74,365 - 231,575 Total Pension Trust Funds ........... 7,925,506$ 735,999$ 517,998$ 515,855$ 9,695,358$

Total .............................................. 13,247,533$ 2,515,763$ 1,280,976$ 1,151,933$ 18,196,205$

Maturities (in Years)

City’s Fair Value Measurements for Investments:

The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation techniques used to measure fair value.

Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets Level 2 - Observable inputs other than quoted market prices, and Level 3 - Unobservable Inputs Investments that are valued using net asset value per share (NAV) (or its equivalent) as a practical expedient are not classified in the fair value hierarchy.


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The investments measured value at fair value as of December 31, 2017 are as follows (dollars in thousands):

Investments by Fair Value Level Level 1 Level 2 Level 3

U.S. Treasuries ........................................ -$ 45,797$ -$ U.S. Agencies .......................................... - 1,252,599 - Corporate Bonds ...................................... - 1,457,667 - Municipal Bonds ....................................... - 1,111,777 - State and Local Government Series ........... - 217,792

Total Investments at Fair Value ............ -$ 4,085,632$ -$

Money market investments and participating interest-earning investment contracts that have a remaining maturity at the time of purchase of one year or less and are held by governments other than the external investment pools are measured at amortized cost and are not reflected in the table above. The total of these investments at amortized cost for the City are $4,415.2 million.

Pension Trust Funds' Investments (Dollars in thousands):

Summary Total Level 1 Level 2 Level 3U.S.and Foreign Government Agencies .. 694,948$ -$ 694,827$ 121$ Corporate Bonds ............. 1,130,862 - 1,130,794 68 Corporate Equities ........... 4,502,197 4,497,635 4,062 500 Pooled Funds .................. 124,230 5,711 118,519 - Real Estate ..................... 15,100 15,100 - - Securities Received from Securities Lending ........ 553,047 - 553,047 - Certificates of Deposit and Other Short-term .... 222,732 30,117 192,590 25 Derivatives ...................... 27,924 - 27,924 - Other .............................. 204,719 - 204,719 - Subtotal ..................... 7,475,759 4,548,563 2,926,482 714

Investments measured Unfunded Redemption at net asset value: Commitments NoticeCorporate Bonds ............. 518,746$ 9,450$ as needed daily, monthlyCorporate Equities ........... 559,810 - as needed; quarterly, not eligible daily, up to 90 days, N/APooled Funds .................. 25,459 - Real Estate ..................... 554,895 54,201 as needed; quarterly, N/A 60/90 days, open end or N/AVenture Capital ............... 463,693 126,215 as needed or N/A 90 days or N/ACertificates of Deposit and Other Short-term .... 70,140 - Other *............................ 26,856 77,476 as needed or N/A up to 90 days or N/A Subtotal ..................... 2,219,599

Total ..................... 9,695,358$

* Other includes Fixed Assets & Hedge Fund of Funds.

RedemptionFrequency


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Corporate bonds - Include debt instruments created by companies for the purpose of raising capital and pay a specified amount of interest on a regular basis. Corporate equities - Include investments in funds primarily holding publicly traded US and non-US equity securities. Pooled funds - Include investments that are pooled to maximize the total return.

Real estate funds - Include investments in open and closed-end real estate funds. Investments in open-end funds have limited redemption availability as redemption opportunities are based on available liquidity. Closed-end funds do not offer redemptions. Distributions from closed-end funds will be received as the underlying investments are liquidated.

Venture capital - Includes investments where the objective is to achieve long-term capital appreciation, preserve capital, and achieve a consistent pattern of returns through investments in limited partnerships, privately issued securities, private equity funds, and other pooled investments with a focus on the venture sector and undervalued alternative investments. Closed-end limited partnership interests are generally illiquid and cannot be redeemed. Short-term investments - Include short-term investments of high quality and low risk to protect capital while achieving investment returns. Other - Includes Hedge Funds of long/short equity hedge fund-of-funds.

i) Interest Rate Risk – As a means of limiting its exposure to fair value losses arising from rising interest

rates, the City’s investment policy limits all securities so purchased, except tax anticipation warrants, municipal bonds, notes, commercial paper or other instruments representing a debt obligation of the City, which shall show on their face that they are fully payable as to principal and interest, where applicable, if any, within thirty years from the date of purchase.

ii) Credit Risk – With regard to credit risk, the Code limits the investments in securities to:

(1) Interest-bearing general obligations of the United States and the State of Illinois; (2) United States treasury bills and other non-interest bearing general obligations of the United States or

United States government agencies when offered for sale at a price below the face value of same, so as to afford the City a return on such investment in lieu of interest;

(3) Tax anticipation warrants, municipal bonds, notes, commercial paper or other instruments

representing a debt obligation issued by the City, the Chicago Board of Education, the Chicago Housing Authority, the Chicago Park District, the Chicago Transit Authority, and the City Colleges of Chicago;

(4) Commercial paper which: (1) at the time of purchase, is rated in the two highest classifications by at

least two accredited ratings agencies; and (2) matures not more than 270 days after the date of purchase;

(5) Reverse repurchase agreement if: (1) the term does not exceed 90 days; and (2) the maturity of the investment acquired with the proceeds of the reverse repurchase agreement does not exceed the expiration date of the reverse repurchase agreement; Reverse repurchase agreements may be transacted with primary dealers and financial institutions, provided that the City has on file a master repurchase agreement;

(6) Certificates of deposit of banks or savings and loan associations designated as municipal

depositories which are insured by federal deposit insurance; provided that any amount of the deposit in excess of the federal deposit insurance shall be collateralized as noted in Custodial Credit Risk – Cash and Certificates of Deposit below;


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(7) Bankers acceptance of banks whose senior obligations, at the time of purchase, are rated in either the AAA or AA rating categories by at least two accredited ratings agencies;

(8) Tax-exempt securities exempt from federal arbitrage provisions applicable to investments of

proceeds of the City's tax-exempt debt obligations;

(9) Domestic money market mutual funds regulated by and in good standing with the Securities and Exchange Commission; provided that such money market mutual funds' portfolios are limited to investments authorized by this section;

(10) Any other suitable investment instrument permitted by state laws governing municipal investments

generally, subject to the reasonable exercise of prudence in making investments of public funds;

(11) Except where otherwise restricted or prohibited, a non-interest-bearing savings account, non- interest-bearing checking account or other non-interest bearing demand account established in a national or state bank, or a federal or state savings and loan association, when, in the determination of the treasurer, the placement of such funds in the non-interest bearing account is used as compensating balances to offset fees associated with that account that will result in cost savings to the City;

(12) Bonds of companies organized in the United States with assets exceeding $1.0 billion that, at the

time of purchase, are rated not less than two classes above investment grade, or equivalent rating, by at least two accredited ratings agencies;

(13) Debt instruments of international financial institutions, including but not limited to the World Bank and

the International Monetary Fund, that, at the time of purchase, are rated within four intermediate credit ratings of the United States sovereign credit rating by at least two accredited ratings agencies, but not less than an A-rating, or equivalent rating. The maturity of investments authorized in this subsection shall not exceed 10 years. For purposes of this subsection, an “international financial institution” means a financial institution that has been established or chartered by more than one country and the owners or shareholders are generally national governments or other international institutions such as the United Nations;

(14) United States dollar denominated debt instruments of foreign sovereignties that, at the time of

purchase, are rated within four intermediate credit ratings of the United States sovereign credit rating by at least two accredited ratings agencies, but not less than an A-rating or equivalent rating;

(15) Interest-bearing bonds of any county, township, city, village, incorporated town, municipal

corporation, or school district, of the State of Illinois, of any other state, or of any political subdivision or agency of the State of Illinois or of any other state, whether the interest earned thereon is taxable or tax-exempt under federal law. The bonds shall be registered in the name of the city or held under a custodial agreement at a bank. The bonds shall be rated, at the time of purchase, not less than A-, or equivalent rating, by at least two accredited rating agencies with nationally recognized expertise in rating bonds of states and their political subdivisions;

(16) Bonds registered and regulated by the Securities and Exchange Commission and for which the full

faith and credit of the State of Israel is pledged for payment; provided that the bonds have an A-rating or above or equivalent rating by at least two accredited ratings agencies;

(17) Bonds, notes, debentures, or other similar obligations of agencies of the United States rated, at the

time of purchase, no less than AAA by at least two accredited rating agencies. (18) Asset-backed or agency mortgage-backed securities, any of which are rated at least investment

grade by at least two accredited rating agencies, but no funds may be invested in: (1) obligations the payment of which represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral that pays no principal (e.g., MBS Interest-Only Strips); (2) obligations the payment of which represents the principal balance repayments from the underlying mortgage-backed security collateral that pays no interest (e.g., MBS Principal-Only Strips); (3) collateralized mortgage obligations ("CMOs") that have a stated final maturity date of greater than 10


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years; and (4) CMOs the interest rate of which is determined in a manner that adjusts in the opposite direction to the changes in a market index (e.g.. Inverse Floating Rate CMOs).

(19)Interest in the Chicago Community Catalyst Fund.

Total holdings across all funds held by the City shall have no less than an overall average rating of Aa1 on a quarterly basis, as rated by two accredited rating agencies. The following schedule summarizes the City’s and Pension Trust Funds’ exposure to credit risk (in thousands):

Quality Rating City Quality RatingPension Trust

FundsAaa/AAA ...................... 2,855,158$ Aaa/AAA ........................ 226,045$ Aa/AA ........................... 2,856,880 Aa/AA ............................ 104,250 A/A ............................... 1,017,335 A/A ................................. 198,350 Baa/BBB ...................... 88,882 Baa/BBB ........................ 330,375 Ba/BB ........................... - Ba/BB ............................ 220,051 B/B ............................... - B/B ................................. 148,547 Caa/CCC ...................... - Caa/CCC ....................... 22,198 Ca ................................ - Ca .................................. 455 C/CC ............................ - CC/C .............................. 4,634 D/D ............................... - D/D ................................ 3,962 P1/A1 ........................... 1,320,670 Not Rated ...................... 327,372 P2/A2 ........................... 18,249 Other .............................. 431,137 MIG1/SP-1+ ................. 12,168 MIG2/SP-1+ ................. - Not Rated* ................... 331,505 Total Funds .................. 8,500,847$ 2,017,376$

* Not rated is primarily composed of money market mutual funds. iii) Custodial Credit Risk – Cash and Certificates of Deposit: This is the risk that in the event of a bank

failure, the City’s Deposits may not be returned. The City’s Investment Policy states that in order to protect the City public fund deposits, depository institutions are to maintain collateral pledges on City deposits and certificates of deposit during the term of the deposit. For certificates of deposit of banks or savings and loan associations designated as municipal depositories which are insured by federal deposit insurance, any amount of the deposit in excess of the federal deposit insurance shall be either: (1) fully collateralized at least 102 percent by: (i) marketable U.S. government securities marked to market at least monthly; (ii) bonds, notes, or other securities constituting the direct and general obligation of any agency or instrumentality of the United States; or (iii) bonds, notes or other securities constituting a direct and general obligation of any county, township, city, village, incorporated town, municipal corporation, or school district, of the State of Illinois or of any other state, or of any political subdivision or agency of the State of Illinois or any other state which are rated in either the AAA or AA rating categories by at least two accredited ratings agencies and maintaining such rating during the term of such investments; (2) secured by a corporate surety bond issued by an insurance company licensed to do business in the State of Illinois and having a claims-paying rating in the top rating category as rated by a nationally recognized statistical rating organization and maintaining such rating during the term of such investment; or (3) fully collateralized at least 102 percent by an irrevocable letter of credit issued in favor of the City by the Federal Home Loan Bank, provided that the Federal Home Loan Bank’s short-term debt obligations are rated in the highest rating category by at least one accredited ratings agency throughout the term of the certificate of deposit. The collateral required to secure City funds must be held in safekeeping and pursuant to collateral agreements which would prohibit release or substitution of pledged assets without proper written notification and authorization of the City Treasurer. The final maturity of acceptable collateral pledged shall not exceed 120 months.


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The bank balance of cash and certificates of deposit with the City’s various municipal depositories was $902.3 million. 96.6 percent of the bank balance was either insured or collateralized with securities held by City agents in the City’s name. $30.6 million was uncollateralized at December 31, 2017, and thus was subject to custodial credit risk.

iv) Custodial Credit Risk - Investments: For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. The City has no custodial credit risk exposure because investment securities are insured, registered and held by the City.


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v) Foreign Currency Risk - In the case of the Pension Trust Funds, this is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The risk of loss is managed by limiting its exposure to fair value loss by requiring their international securities managers to maintain diversified portfolios. The following schedule summarizes the Pension Trust Funds’ exposure to foreign currency risk (in thousands):

Foreign Currency RiskArgentine peso ...................... 709$ Australian dollar ..................... 60,641 Brazilian real .......................... 38,165 British pound .......................... 259,862 Canadian dollar ...................... 70,708 Chilean peso .......................... 1,341 Chinese yuan ......................... 363 Colombian peso ..................... 5,123 Czech Republic koruna ........... 2,436 Danish krone ......................... 35,792 Egyptian pound ...................... 519 European euro ....................... 450,794 HK Chinese Yuan renminbi ...... 1 Hong Kong dollar ................... 197,639 Hungarian forint ...................... 3,973 Indian rupee .......................... 62,099 Indonesian rupiah ................... 25,002 Japanese yen ........................ 384,672 Kenyan shilling ....................... 534 Malaysian ringgit .................... 8,226 Mexican peso ........................ 22,409 New Israeli shekel .................. 8,322 New Taiwan dollar ................. 49,023 New Zealand dollar ................ (5,134) Norwegian krone .................... 23,102 Pakistan rupee ....................... 81 Philippines peso ..................... 8,329 Polish zloty ............................ 2,234 Qatari riyal ............................ 276 Russian ruble ......................... (808) Singapore dollar ..................... 12,471 South African rand ................. 36,362 South Korean won .................. 68,993 Swedish krona ....................... 48,831 Swiss franc ........................... 86,238 Taiwan dollar ......................... 6,169 Thailand baht ......................... 18,449 Turkish lira ............................. 8,088 United Arab Emirates dirham .. 451 Total Pension Trust Funds ...... 2,002,485$


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vi) The following schedule summarizes the cash and investments reported in the basic financial statements (dollars in thousands):

Per Note 4:

Investments - City .................................................... 8,500,847$ Investments - Pension Trust Funds ............................ 9,695,358

18,196,205$ Per Financial Statements:

Restricted Investments ............................................. 3,069,989$ Unrestricted Investments .......................................... 2,007,736 Investments with Fiduciary Funds .............................. 9,009,391 Investments with Escrow Agent ................................ 665,528 Invested Securities Lending Collateral ....................... 553,047 Investments Included as Cash and Cash

Equivalents on the Statement of Net Position .......... 2,890,514 18,196,205$

5) Property Tax The City’s property tax becomes a lien on real property on January 1 of the year it is levied. The Cook County Assessor (Assessor) is responsible for the assessment of all taxable real property within Cook County (County), except for certain railroad property assessed directly by the State. The County Board has established a triennial cycle of reassessment in which one-third of the County will be reassessed each year on a repeating schedule established by the Assessor. Property in the County is separated into fifteen classifications for assessment purposes. After the Assessor establishes the fair market value of a parcel of land, that value is multiplied by one of the classification percentages to arrive at the assessed valuation (Assessed Valuation) for that parcel. These percentages range from 10.0 percent for certain residential, commercial, and industrial property to 25.0 percent for other commercial and industrial property. The Illinois Department of Revenue has the statutory responsibility of ensuring uniformity of real property assessments throughout the State. Each year, the Illinois Department of Revenue furnishes the county clerks with an adjustment factor to equalize the level of assessment among counties. This factor (Equalization Factor) is then applied to the Assessed Valuation to compute the valuation of property to which a tax rate will be applied (Equalized Assessed Valuation). The County Clerk adds the Equalized Assessed Valuation of all real property in the County to the valuation of property assessed directly by the State of Illinois and subtracts total amounts of EAV in Tax Increment Financing Districts to arrive at the base amount (Tax Base) used in calculating the annual tax rates. The County Clerk computes the annual tax rate by dividing the levy by the Tax Base and then computes the rate for each parcel of real property by aggregating the tax rates of all governmental units having jurisdiction over that particular parcel. The County Treasurer then issues the tax bills. Property taxes are deposited with the County Treasurer, who remits to the City its respective share of the collections. Taxes levied in one year become due and payable in two installments during the following year on March 1 and August 1 or 30 days from mailing of tax bills if later than July 1. The first installment is 55.0 percent of the prior year’s tax bill. The second installment tax bill equals the total tax liability for the year minus the first installment tax bill amount. The City Council adopted an ordinance effective in 1994 limiting the City’s aggregate property tax levy to an amount equal to the prior year’s aggregate property tax levy plus the lesser of (a) five percent or (b) the percentage increase in the annualized Consumer Price Index. The ordinance provides an exception for that portion of any property tax debt service levy equal to the aggregate interest and principal payments on the City’s general obligation bonds and notes during the 12-month period ended January 1, 1994, subject to annual increase in the manner described above for the aggregate levy, all as provided by the ordinance. Most general obligation bond levies approved after 2001 have also been excluded from this limit. In 2015 the City Council added an exception for portions of the property tax levy used to meet the City’s pension obligations.


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6) Interfund Balances and Transfers

a) The following balances at December 31, 2017 represent due from/to balances among all funds (dollars in thousands):

Fund Type/Fund Due From Due To

Governmental Funds:General ................................................................... 233,028$ 185,342$ Federal, State and Local Grants ................................ 22,474 253,145 Special Taxing Areas ................................................ 88,489 1,581 Service Concession and Reserve ............................... 30,940 - Bond, Note Redemption and Interest * ....................... 412 769,064 STSC Debt Service * ................................................ 769,064 - Community Development and Improvement Projects ... 19,453 59,501 Pension .................................................................. - 123,896 Nonmajor Governmental Funds .................................. 100,608 62,421

Total Governmental Funds ..................................... 1,264,468 1,454,950

Enterprise Funds:Water ...................................................................... 36,670 12,482 Sewer ..................................................................... 22,238 8,904 Chicago Midway International Airport ......................... 1,583 9,537 Chicago-O'Hare International Airport .......................... 39,257 2,224 Chicago Skyway ...................................................... - 15

Total Enterprise Funds ........................................... 99,748 33,162

Fiduciary activities:Pension Trust ........................................................... 123,896 -

Total Fiduciary activities ......................................... 123,896 -

Total .......................................................................... 1,488,112$ 1,488,112$

The balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

* The STSC is a blended component unit of the City. The due from balance within the STSC Debt Service fund relates to the reclassification of amounts as a result of blending deferred outflows. The Due From within the STSC Debt Service fund and the Due To within the City's Bond, Notes Redemption and Interest fund represent the sale of sales tax revenues that will be amortized over the duration of the related bonds.


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b) The following balances at December 31, 2017 represent interfund transfers among all funds (dollars in thousands):

Fund Type/Fund Transfer In Transfer OutGovernmental Funds:

General ................................................................... 180,227$ 268,263$ Special Taxing Areas ................................................ 12,042 48,295 Service Concession and Reserve ............................... - 21,060 Bond, Note Redemption and Interest ......................... 125,023 77,203 STSC Debt Service * ................................................ - 2,052 Community Development and Improvement Projects ... 17,128 5 Pension ................................................................... 109,416 - Nonmajor Governmental Funds * ............................... 145,902 170,645

Total Governmental Funds ..................................... 589,738 587,523

Business-type activities:Water ...................................................................... - 2,095 Sewer ..................................................................... - 120

Total Business-type activities ................................. - 2,215

Total .......................................................................... 589,738$ 589,738$

Transfers are used to move revenues from the fund that the statute or budget requires to collect them to the fund that the statute or budget requires to expend them and to move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due.

* The STSC is a blended component unit of the City. Included within the Transfer Out balance of the Nonmajor Governmental Funds is the transfer of the residual sales tax revenues from the STSC General Fund (blended as a nonmajor special revenue fund) to the City's General Fund.


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7) Capital Assets a) Capital Assets activity for the year ended December 31, 2017 was as follows (dollars in thousands):

Balance Additions Disposals Balance

January 1, and and December 31,2017 Transfers Transfers 2017

Governmental activities:Capital assets, not being depreciated:

Land .............................................................. 1,397,316$ 6,302$ (3,840)$ 1,399,778$ Works of Art and Historical Collections ........ 45,976 1,048 - 47,024 Construction in Progress .............................. 741,043 409,339 (456,333) 694,049

Total capital assets, not being depreciated ..... 2,184,335 416,689 (460,173) 2,140,851 Capital assets, being depreciated:

Buildings and Other Improvements .............. 2,664,568 38,115 (20,730) 2,681,953 Machinery and Equipment ............................ 1,523,894 94,277 (15,257) 1,602,914 Infrastructure ................................................. 9,176,818 404,176 (4,267) 9,576,727

Total capital assets, being depreciated ........... 13,365,280 536,568 (40,254) 13,861,594 Less accumulated depreciation for:

Buildings and Other Improvements .............. 1,079,142 69,379 (1,160) 1,147,361 Machinery and Equipment ............................ 1,284,234 48,397 (14,688) 1,317,943 Infrastructure ................................................. 4,509,986 281,670 (105) 4,791,551

Total accumulated depreciation ....................... 6,873,362 399,446 (15,953) 7,256,855 Total capital assets, being depreciated, net .... 6,491,918 137,122 (24,301) 6,604,739 Total governmental activities ........................... 8,676,253$ 553,811$ (484,474)$ 8,745,590$

Business-type activities:Capital assets, not being depreciated:

Land .............................................................. 1,027,752$ 998$ -$ 1,028,750$ Construction in Progress .............................. 1,044,956 1,274,640 (445,909) 1,873,687

Total capital assets, not being depreciated ..... 2,072,708 1,275,638 (445,909) 2,902,437 Capital assets, being depreciated:

Buildings and Other Improvements .............. 18,597,449 626,481 (108,944) 19,114,986 Machinery and Equipment ............................ 698,497 82,262 (235) 780,524

Total capital assets, being depreciated ........... 19,295,946 708,743 (109,179) 19,895,510 Less accumulated depreciation for:

Buildings and Other Improvements .............. 5,569,441 414,189 (43,578) 5,940,052 Machinery and Equipment ............................ 401,658 18,944 (229) 420,373

Total accumulated depreciation ....................... 5,971,099 433,133 (43,807) 6,360,425 Total capital assets, being depreciated, net .... 13,324,847 275,610 (65,372) 13,535,085 Total business-type activities ........................... 15,397,555$ 1,551,248$ (511,281)$ 16,437,522$ Total Capital Assets ......................................... 24,073,808$ 2,105,059$ (995,755)$ 25,183,112$


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b) Depreciation expense was charged to functions/programs of the City as follows (dollars in thousands):

Governmental activities:General Government ..................................................... 28,523$ Public Safety ................................................................. 44,791 Streets and Sanitation ................................................... 15,327 Transportation ............................................................... 290,683 Health ............................................................................ 1,611 Cultural and Recreational .............................................. 18,511

Total Depreciation Expense - Governmental activities .... 399,446$

Business-type activities:Water ............................................................................ 66,007$ Sewer ............................................................................ 44,970 Chicago Midway International Airport ............................ 51,443 Chicago-O'Hare International Airport ............................ 262,331 Chicago Skyway ............................................................ 8,382

Total Depreciation Expense - Business-type activities .... 433,133$

8) Leases

a) Operating Leases

The City leases building and office facilities under noncancelable operating leases. Total costs for such leases were approximately $16.3 million for the year ended December 31, 2017.

The future minimum lease payments for these leases are as follows (dollars in thousands):

2018 ..................................................................... 17,098$ 2019 ..................................................................... 4,803 2020 ..................................................................... 3,155 2021 ..................................................................... 2,587 2022 ..................................................................... 1,914 2023 - 2027 .......................................................... 4,082 2028 - 2032 .......................................................... 109 2033 - 2037 .......................................................... 109 2038 - 2042 .......................................................... 109 Total Future Rental Expense................................... 33,966$


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b) Lease Receivables

Most of the O’Hare land, buildings and terminal space are leased under operating lease agreements to airlines and other tenants. The following is a schedule of the minimum future rental income on noncancelable operating leases as of December 31, 2017 (dollars in thousands):

2018 ..................................................................... 186,533$ 2019 ..................................................................... 93,958 2020 ..................................................................... 4,680 2021 ..................................................................... 4,680 2022 ..................................................................... 4,839 2023 - 2027 .......................................................... 24,619 2028 - 2032 .......................................................... 25,300 2033 - 2037 .......................................................... 21,199 2038 - 2042 .......................................................... 14,315 2043 - 2047 .......................................................... 9,212 Thereafter ............................................................. 6,569 Total Minimum Future Rental Income ...................... 395,904$

Contingent rentals that may be received under certain leases based on the tenants’ revenues or fuel flow are not included in minimum future rental income. Rental income for O’Hare, consisting of all rental and concession revenues except ramp rentals and automobile parking, amounted to $475.4 million, including contingent rentals of $97.7 million.

Most of the Midway land and terminal space is leased under operating lease agreements to airlines and other tenants. The following is a schedule of the minimum future rental income on noncancelable operating leases as of December 31, 2017 (dollars in thousands):

2018 ..................................................................... 53,004$ 2019 ..................................................................... 27,569 2020 ..................................................................... 27,569 2021 ..................................................................... 27,569 2022 ..................................................................... 27,569 2023 - 2027 .......................................................... 137,845 Total Minimum Future Rental Income ...................... 301,125$

Contingent rentals that may be received under certain leases based on tenants’ revenues are not included in minimum future rental income. Rental income for Midway, consisting of all rental and concession revenues except aircraft parking fees and certain departure fees (turns) and automobile parking, amounted to $103.5 million, including contingent rentals of $40.2 million.


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9) Long-term Obligations a) Long-term Debt activity for the year ended December 31, 2017 was as follows (in thousands):

AmountsBalance Balance Due

January 1, December 31, within2017 Additions Reductions 2017 One Year

Governmental activities:Bonds and notes payable:General obligation and other debt ...................... 9,173,009$ 1,237,463$ 723,845$ 9,686,627$ 114,147$ Tax increment ..................................................... 33,520 - 5,595 27,925 5,710 Revenue ............................................................. 766,628 20,168 532,572 254,224 4,295 STSC .................................................................. - 743,735 - 743,735 -

9,973,157 2,001,366 1,262,012 10,712,511 124,152

Add unamortized premium/(discount) ................ 118,300 12,161 41,786 88,675 - Add accretion of capital appreciation bonds ...... 318,844 31,374 34,355 315,863 21,553 Total bonds, notes and certificates payable ....... 10,410,301 2,044,901 1,338,153 11,117,049 145,705

Other liabilities:Net pension liability ............................................ 31,512,071 - 6,453,078 25,058,993 - Other postemployment benefits obligation ......... 167,209 20,432 - 187,641 - Pollution remediation .......................................... 33,201 1,843 - 35,044 - Claims and judgments ........................................ 942,622 166,436 96,302 1,012,756 110,903 Total other liabilities ............................................ 32,655,103 188,711 6,549,380 26,294,434 110,903

Total governmental activities .............................. 43,065,404$ 2,233,612$ 7,887,533$ 37,411,483$ 256,608$

Business-type activities:Revenue bonds and notes payable:Water .................................................................. 2,468,397$ 501,214$ 568,606$ 2,401,005$ 88,916$ Sewer ................................................................. 1,692,820 460,654 292,093 1,861,381 56,201 Chicago-O'Hare International Airport ................. 7,260,508 2,191,787 806,415 8,645,880 298,185 Chicago Midway International Airport ................. 1,781,605 - 25,770 1,755,835 27,930

13,203,330 3,153,655 1,692,884 14,664,101 471,232

Add unamortized premium/(discount) ................ 815,420 320,904 95,949 1,040,375 - Add accretion of capital appreciation bonds ...... 85,363 7,397 10,251 82,509 10,584 Net pension liability ............................................ 4,247,194 - 1,262,863 2,984,331 -

Total business-type activities ............................. 18,351,307$ 3,481,956$ 3,061,947$ 18,771,316$ 481,816$

Total long-term obligations ................................. 61,416,711$ 5,715,568$ 10,949,480$ 56,182,799$ 738,424$

The Pension obligation liability will be liquidated through a Special Revenue Fund (Pension Fund) as provided by tax levy and other operating revenues.


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b) Issuance of New Debt i) General Obligation Line of Credit

During 2017, the City drew $77.2 million from its Line of Credit to fund certain capital projects and operating uses. The City has excluded this line of credit amount from current liabilities, as it intends and has the ability to refinance the obligation on a long-term basis. As of December 31, 2017 the outstanding balance is $77.2 million and the Line of Credit matures on September 24, 2019.

ii) General Obligation Loans In February 2017, the City completed a refinancing of the outstanding Michael Reese Loan. The loan has a fixed interest rate of 3.55%, with a maturity date of June 30, 2024. Principal payments will be made semi-annually with the first semi-annual principal payment on the refinanced loan due on June 30, 2019. As of December 31, 2017, the outstanding balance is $72.8 million.

iii) General Obligation Bonds

General Obligation Bonds, Tax Exempt Series 2017A ($886.0 million) and Taxable Series 2017B ($274.3 million) were sold at a discount in January 2017. The bonds have interest rates ranging from 5.625 percent to 7.045 percent and maturity dates from January 1, 2029 to January 1, 2038. Net proceeds of $1,129.2 million will be used to pay a portion of the costs of 2017 projects ($365.3 million), to refund or pay current and future interest, and refund a portion of certain outstanding General Obligation bonds ($461.7 million), pay certain judgments and settlements ($225.0 million), and fund capitalized interest ($77.2 million). The refunding of interest only in the amount of $213.4 million is reported as cash held with escrow agent in the City’s financials. The refunding of the bonds increased the City’s total debt service payments by $514.8 million, resulting in a net economic loss of approximately $32.3 million and a book loss of approximately $2.6 million. A portion of the bond proceeds were deposited in an irrevocable trust with escrow agents to provide for all future debt service payments for certain outstanding bonds. Therefore, these bonds are considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net position.

iv) Revenue Loans In June 2013, the City entered into a loan agreement with the United States Department of Transportation under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program to complete the Wacker Drive Reconstruction Project. Net proceeds of $96.7 million will fund the Chicago Riverwalk along the main branch of the Chicago River ($96.6 million) and fund capitalized interest ($191 thousand). The interest rate is 3.33 percent and the final maturity of the loan is January 1, 2048. Total loan disbursements made to the City in 2017 were $20.0 million. The final disbursement was made on December 1, 2017, and no further disbursements will be made. As of December 31, 2017, the final total outstanding loan amount is $96.7 million. Principal repayment will begin on January 1, 2020 with a final maturity of January 1, 2048.

v) Enterprise Fund Revenue Bonds and Notes

In August 2013, the City entered into a loan agreement with the United States Department of Transportation under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program to fund a portion of Consolidated Rental Car Facility at O’Hare, additions, extensions and improvements to the airport transit system (ATS) including the purchase of new ATS vehicles and certain public parking facilities. The loan amount of $288.1 million is subordinate to the O’Hare Customer Facility Charge Senior Lien Revenue Bonds, Series 2013. The interest rate is 3.86 percent and the final maturity of the loan is January 1, 2054. Disbursements of $156.8 million were made in 2017. As of December 31, 2017, the outstanding TIFIA loan amount is $159.8 million that includes accrued interest of $3.0 million.


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O’Hare issued $102.2 million of Series 2016 Commercial Paper Notes in 2017. The proceeds were used to finance portions of the costs of authorized airport projects. As of December 31, 2017, there is $102.2 million of outstanding commercial paper notes. O’Hare Senior Lien Revenue Bonds, Series 2016 DEFG ($1,117.2 million) were sold at a premium in January 2017. The bonds have interest rates ranging from 2.0 percent to 5.25 percent and maturity dates from January 1, 2018 to January 1, 2052. The net proceeds of $1,196.1 million will be used to fund certain capital projects ($1,012.8 million), to fund debt service reserves ($49.6 million), and to fund capitalized interest ($133.7 million). O’Hare Senior Lien Revenue and Revenue Refunding Bonds, Series 2017 ABCD ($812.5 million) were sold at a premium in June 2017. The bonds have interest rates ranging from 3.125 percent to 5.0 percent and maturity dates from January 1, 2018 to January 1, 2052. The net proceeds of $924.3 million will be used to refund certain maturities of General Airport Revenue Bonds outstanding ($600.9 million), fund certain capital projects ($266.8 million), to fund debt service reserves ($18.6 million), and to fund capitalized interest ($38.0 million). The current and advance refunding of the bonds decreased the City’s total debt service payment by $64.2 million resulting in a net economic gain of approximately $58.9 million and a book loss of approximately $73.4 million. A portion of the bond proceeds were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments for certain outstanding bonds. Therefore, these bonds are considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net position. Second Lien Water Revenue Bonds, Refunding Series 2017 ($199.4 million) were sold at a premium in June 2017. The bonds have interest rates ranging from 5.0 percent to 5.25 percent and maturity dates from November 1, 2017 to November 1, 2036. The net proceeds of $230.2 million were used to refund certain maturities of Water Revenue bonds outstanding. The current and advance refunding of the bonds decreased the City’s total debt service payments by $42.8 million resulting in a net economic gain of approximately $32.4 million and a book loss of approximately $0.4 million. A portion of the bond proceeds were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments for certain outstanding bonds. Therefore, these bonds are considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net position.

Second Lien Water Revenue Bonds, Refunding Series 2017-2 ($235.3) million were sold at a premium in December 2017. The bonds have an interest rate of 5.0 percent and maturity dates from November 1, 2018 to November 1, 2038. The net proceeds of $271.0 million were used to refund certain maturities of Water Revenue bonds outstanding. The advance refunding of the bonds decreased the total debt service payment by $46.0 million, resulting in a net economic gain of approximately $37.7 million and a book loss of approximately $5.5 million. A portion of the bond proceeds were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments for certain outstanding bonds. Therefore, these bonds are considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net position. Second Lien Wastewater Transmission Revenue Project and Refunding Bonds, Series 2017 A&B ($396.1 million) were sold at a premium in June 2017. The bonds have interest rates ranging from 4.0 percent to 5.25 percent and maturity dates from January 1, 2018 to January 1, 2052. The net proceeds of $441.8 million will be used to fund certain capital projects ($196.0 million) and to refund certain maturities of Wastewater Transmission Revenue bonds outstanding ($242.5 million). The current and advance refunding of the bonds decreased the Sewer’s total debt service payments by $54.1 million, resulting in a net economic gain of approximately $32.6 million and a book loss of approximately $5.3 million. A portion of the bond proceeds were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments for certain outstanding bonds. Therefore, these bonds are considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net position.


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A loan agreement was signed on October 8, 2014, with the Illinois Environmental Protection Agency to line approximately 20 miles of existing sewer line ranging in diameter from 8 inches to 72 inches located throughout the City. In 2017, the Sewer Fund drew $56.2 million from this loan agreement. The loan has an interest rate of 1.99 percent with the maturity dates from June 9, 2017 to June 9, 2036. A loan agreement was signed on January 22, 2016, with the Illinois Environmental Protection Agency to install approximately 4,900 lineal feet of reinforced concrete sewer main ranging from 36 to 72 inch diameter pipe on the 56th street corridor. In 2017, the Sewer Fund drew $4.1 million from this loan agreement. The loan has an interest rate of 1.86 percent with the maturity dates from August 18, 2016 to August 18, 2036. A loan agreement was signed on November 4, 2016, with the Illinois Environmental Protection Agency to install approximately 5,300 lineal feet of reinforced concrete sewer main ranging from 24 to 55 inch diameter pipe on Avenue “L” corridor. In 2017, the Sewer Fund drew $4.3 million from this loan agreement. The loan has an interest rate of 1.75 percent with the maturity dates from May 3, 2018 to November 3, 2037. A loan agreement was signed on May 27, 2014, with the Illinois Environmental Protection Agency for the replacement of the obsolete electrical switchgear and distribution equipment at the South Water Purification Plant and other installation building construction and minor architectural and electrical projects. In 2017, the Water Fund drew $40.4 million from this loan agreement. The loan agreement has an interest rate of 1.99 percent with maturity dates from March 9, 2018 to September 9, 2037. An amended loan agreement was signed on May 18, 2016, with the Illinois Environmental Protection Agency for the replacement of approximately 24 miles of damaged, undersized, leaking and antiquated water main located throughout the City with new 8 - inch water mains. The original loan agreement was signed on January 22, 2015. The amendment increased the original loan amount from $47 million to $59.5 million. In 2016, the Water Fund drew $55.3 million from this loan agreement. In 2017, the Water Fund drew an additional $6.5 million. The loan agreement has an interest rate of 2.21 percent with maturity dates from July 31, 2016 to January 31, 2036. A loan agreement was signed on November 17, 2015, with the Illinois Environmental Protection Agency for the installation of water meters equipped with AMR (Automatic Meter Reading) at residences throughout the City. The Water Fund drew $19.6 million from this loan agreement. The loan agreement has an interest rate of 1.86 percent with maturity dates from June 1, 2017 to June 1, 2036.

vi) STSC Bonds and Notes The Sales Tax Securitization Corporation issued Sales Tax Securitization Refunding Series 2017ABC bonds were sold at a premium in December 2017. The bonds have interest rates ranging from 2.596% to 5.0% and maturity dates from January 1, 2020 to January 1, 2043. The net proceeds of $785.2 million were used to advance refund all of the City’s outstanding Sales Tax Revenue Bonds ($614.9 million) and to refund all or a portion of certain outstanding General Obligation bonds ($170.3 million). The current and advance refunding of the bonds decreased the City’s total debt service payments by $21.0 million, resulting in a net economic gain of approximately $46.3 million and a book loss of approximately $85.0 million. The bonds are secured by a pledge of the Sales Tax Revenues. A portion of the bond proceeds were deposited in an irrevocable trust with escrow agents to provide for all future debt service payments for certain outstanding bonds. Therefore, these bonds are considered to be defeased and the liability for those bonds has been removed from the government-wide statement of net position.

c) Annual requirements listed below for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2018 have been excluded because funds for their payment have been provided for. Annual requirements to amortize debt outstanding as of December 31, 2017 are as follows (dollars in thousands):


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Year Ending Principal Interest Principal InterestDecember 31,2018 ................... 194,097$ 455,975$ 5,710$ 1,233$ 2019 ................... 276,480 477,066 6,020 960 2020 ................... 355,650 535,759 4,135 706 2021 ................... 352,334 518,433 4,375 494 2022 ................... 358,800 507,029 7,685 192 2023-2027 .......... 1,760,155 2,280,901 - - 2028-2032 .......... 2,192,734 1,799,986 - - 2033-2037 .......... 2,672,166 1,031,159 - - 2038-2042 .......... 1,261,836 271,411 - - 2043-2047 .......... 108,170 6,830 - -

9,532,422$ 7,884,549$ 27,925$ 3,585$

General Obligation Tax Increment

Year Ending Principal Interest Principal Interest Principal InterestDecember 31,2018 ................... 4,515$ 10,864$ -$ 29,451$ 471,233$ 711,579$ 2019 ................... 4,980 10,642 3,000 28,123 478,315 688,490 2020 ................... 5,365 10,399 3,150 27,973 466,419 674,035 2021 ................... 5,777 10,140 27,045 27,816 435,008 649,936 2022 ................... 6,217 9,862 33,705 26,752 463,112 628,915 2023-2027 ........... 38,737 44,427 189,305 112,983 2,712,014 2,787,575 2028-2032 ........... 54,133 34,056 163,925 74,278 3,108,230 2,028,799 2033-2037 ........... 77,532 19,697 147,630 47,819 3,137,530 1,216,587 2038-2042 ........... 22,758 7,396 175,975 19,380 2,080,109 514,901 2043-2047 ........... 29,915 2,934 - - 721,938 180,854 2048-2052 ........... - - - - 452,205 60,432 2053-2054 ........... - - - - 23,651 924

249,929$ 160,417$ 743,735$ 394,575$ 14,549,764$ 10,143,027$

Revenue Business-type ActivitiesSecuritization CorporationSales Tax

For the debt requirements calculated above, interest rates for fixed rate bonds debt range from 0.74 percent to 7.781 percent and interest on variable rate debt was calculated at the rate in effect or the effective rate of a related swap agreement, if applicable, as of December 31, 2017. Letters of credit were issued by third party financial institutions that are expected to be financially capable of honoring their agreements.

O’Hare and Midway have variable rate bonds that may bear interest from time to time at a flexible rate, a daily rate, a weekly rate, an adjustable long rate, or the fixed rate as determined by the remarketing agent, in consultation with the City. An irrevocable letter of credit provides for the timely payment of principal and interest on the O’Hare’s and Midway’s variable rate Bonds. In the event that variable rate bonds are tendered by the owners thereof for purchase by the City and not successfully remarketed, the City would be obligated to reimburse the letter of credit bank for amounts drawn under the letter of credit to fund the purchase of such tendered bonds. If the City fails to reimburse the bank, the City’s obligation to reimburse the bank may be converted to a term loan. There are no term loans currently outstanding under any reimbursement agreement. As of December 31, 2017, the principal balance of variable rate bonds was $240.6 million and $252.3 million for O’Hare and Midway, respectively.


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d) Derivatives

i) Interest Rate Swaps

(1) Objective of the swaps. In order to protect against the potential of rising interest rates and/or changes in cash flows, the City has entered into various separate interest rate swaps at a cost less than what the City would have paid to issue fixed-rate debt. Midway has the following outstanding swaps (dollars in thousands):

NotionalClassification Amount Classification Amount Amount

Business-type Activities Hedges:

Interest Rate Swaps ..

Deferred Outflow of Resources 1,715$

Deferred Outflow of Resources (24,319)$ 127,625$

December 31, 2017Fair Value at

Changes in Fair Value

(2) Terms, fair values, and credit risk. The objective and terms, including the fair values and credit ratings, of the City’s hedging derivative instruments outstanding as of December 31, 2017, are as follows. The notional amounts of the swaps approximate the principal amounts of the associated debt. The City’s swap agreements contain scheduled reductions to outstanding notional amounts that are expected to approximately follow scheduled or anticipated reductions in the associated “bonds payable” category. Under the swaps on a net basis for each related series of bonds, the City pays the counterparty a fixed payment and receives a variable payment computed according to the London Interbank Offered Rate (LIBOR) and/or The Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index. The terms as of December 31, 2017, are as follows (dollars in thousands):

Counter-Termi- party

Notional Effective Fair nation CreditAmounts Date Values Date Rating

Hedging InstrumentsBusiness-type Activities:Chicago Midway International Airport 76,575 12/14/2004 Pay 4.174%; receive SIFMA Plus .05% (14,256)$ 1/1/2035 A1/A+Revenue Bonds (Series 2004C&D) ... 51,050 4/21/2011 Pay 4.247%; receive SIFMA Plus .05% (10,063) 1/1/2035 Aa2/AA-

Total ................ (24,319)$

TermsAssociatedBond Issue

See Table 31 in Statistical Section for Counterparty Entities and additional details for credit ratings. Type and objective for all the Swaps is the same, as mentioned earlier.

(3) Fair Value. As of December 31, 2017, the swaps had a negative fair value of $24.3 million. As per

industry convention, the fair values of the City’s outstanding swaps were estimated using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the forward rates implied by the yield curve correctly anticipate future spot rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement on the swap. Because interest rates are below the Fixed Rate Paid, the City’s swaps had negative values. Derivative instruments are valued in the market using regression analysis. Significant inputs to the derivative valuation for interest rate swaps are observable in active markets and are classified as Level 2 in the fair value hierarchy.


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(4) Credit Risk. The City is exposed to credit risk (counterparty risk) through the counterparties with which it enters into agreements. If minimum credit rating requirements are not maintained, the counterparty is required to post collateral to a third party. This protects the City by mitigating the credit risk, and therefore the ability to pay a termination payment, inherent in a swap. Collateral on all swaps is to be in the form of cash or Eligible Collateral held by a third-party custodian. Upon credit events, the swaps also allow transfers, credit support, and termination if the counterparty is unable to meet the said credit requirements.

(5) Basis Risk. Basis risk refers to the mismatch between the variable rate payments received on a swap

contract and the interest payment actually owed on the bonds. The two significant components driving this risk are credit and SIFMA/LIBOR ratios. Credit may create basis risk because the City’s bonds may trade differently than the swap index as a result of a credit change in the City. SIFMA/LIBOR ratios (or spreads) may create basis risk. With percentage of LIBOR swaps, if the City’s bonds trade at a higher percentage of LIBOR over the index received on the swap, basis risk is created. This can occur due to many factors including, without limitation, changes in marginal tax rates, tax-exempt status of bonds, and supply and demand for variable rate bonds. The City is exposed to basis risk on all swaps except those that are based on Cost of Funds, which provide cash flows that mirror those of the underlying bonds. For all other swaps, if the rate paid on the bonds is higher than the rate received, the City is liable for the difference. The difference would need to be available on the debt service payment date and it would add additional underlying cost to the transaction.

(6) Tax Risk. The swap exposes the City to tax risk or a permanent mismatch (shortfall) between the floating rate received on the swap and the variable rate paid on the underlying variable-rate bonds due to tax law changes such that the federal or state tax exemption of municipal debt is eliminated or its value reduced. There have been no tax law changes since the execution of the City’s swap transactions.

(7) Termination Risk. The risk that the swap could be terminated as a result of certain events including a

ratings downgrade for the issuer or swap counterparty, covenant violation, bankruptcy, payment default or other defined events of default. Termination of a swap may result in a payment made by the issuer or to the issuer depending upon the market at the time of termination.

(8) Rollover Risk. The risk that the City may be exposed to rising variable interest rates if (i) the swap

expires or terminates prior to the maturity of the bonds and (ii) the City is unable to renew or replace the swap.

(9) Swap payments and associated debt. As of December 31, 2017, debt service requirements of the City’s outstanding variable-rate debt and net swap payments, assuming current interest rates remain the same, for their term are as follows (dollars in thousands):

Interest

RateYear Ending Principal Interest Swaps, Net TotalDecember 31,2018 ................... 4,775$ 2,140$ 3,041$ 9,956$ 2019 ................... 5,000 2,053 2,918 9,971 2020 ................... 5,225 1,963 2,789 9,977 2021 ................... 5,350 1,870 2,658 9,878 2022 ................... 5,675 1,772 2,518 9,965 2023 - 2027 ........ 32,400 7,227 10,270 49,897 2028 - 2032 ........ 40,375 4,024 5,719 50,118 2033 - 2035 ........ 28,825 557 792 30,174

127,625$ 21,606$ 30,705$ 179,936$

Variable-Rate Bonds


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e) Debt Covenants

i) Water Fund - The ordinances authorizing the issuance of outstanding Water Revenue Bonds require that net revenues available for bonds, as adjusted shall each fiscal year at least equal the greater of (i) 120% of the aggregate debt service requirement for the fiscal year on all the outstanding senior lien bonds, or (ii) the sum of (A) aggregate debt service requirements for the fiscal year on the outstanding senior lien bonds, plus (B) 110 percent of the aggregate debt service requirements for the fiscal year on of the outstanding second lien bonds, plus (C) aggregate outstanding debt service requirements for the fiscal year on the outstanding IEPA loans, plus (D) annual debt service requirement for the fiscal year on aggregate outstanding water commercial paper notes, plus (E) annual debt service requirement on any outstanding water line of credit. This requirement was met at December 31, 2017.

ii) Sewer Fund - The ordinances authorizing the issuance of outstanding Wastewater Transmission

Revenue Bonds provide for the creation of separate accounts into which monies will be deposited, as appropriate. The ordinances require that net revenues available for bonds, as adjusted shall each fiscal year at least equal (A) 115 percent of the aggregate debt service requirement for the fiscal year on the outstanding senior lien bonds, plus (B) the sum of the aggregate annual debt service requirements for the fiscal year on of the outstanding second lien bonds, plus (C) 115 percent of the aggregate outstanding debt service requirements for the fiscal year on of the outstanding IEPA loans, plus (D) annual debt service requirement for the fiscal year on aggregate outstanding debt service on any outstanding wastewater line of credit and commercial paper notes. This requirement was met at December 31, 2017.

iii) Chicago Midway International Airport Fund - The Master Indenture of Trust securing Chicago Midway Airport Revenue Bonds requires in each year that the City fix and establish and revise from time to time whenever necessary, such rates and other charges for the use and operation of Midway and for services rendered by the City in the operation of Midway in order that, in each Fiscal year, Revenues, together with any Other Available Monies deposited with the Trustee with respect to such Fiscal Year and any cash balance held in the Revenue Fund on the first day of such Fiscal Year not then required to be deposited in any Fund or Account, will be at least sufficient (a) to provide for the Operation and Maintenance Expenses for the Fiscal Year and (b) to provide for the greater of (i) the amounts needed to make the Deposits required during such Fiscal Year into the Debt Service Funds, the Operations & Maintenance Reserve Account, the Working Capital Account, the Debt Service Reserve Fund, the Junior Lien Obligation Debt Service Fund, the Repair and Replacement Fund, and the Special Project Fund and (ii) an amount not less than 125 percent of the Aggregate Debt Service for the Bond Year commencing during such Fiscal Year reduced by an amount equal to the sum of any amount held in any Capitalized Interest Account for disbursement during such Fiscal Year to pay interest on First Lien Bonds. These requirements were met at December 31, 2017. The Master Indenture of Trust Securing Chicago Midway Airport Second Lien Obligations requires that the City fix and establish and revise from time to time whenever necessary, such rentals, rates and other charges for the use and operation of Midway and for certain services rendered by the City in the operation of Midway in order that in each Fiscal Year, Revenues, together with Other Available Moneys deposited with the First Lien Trustee or the Second Lien Trustee with respect to such Fiscal Year and any cash balance held in the First Lien Revenue Fund or the Second Lien Revenue Fund on the first day of such Fiscal Year not then required to be deposited in any Fund or Account under the First Lien Indenture for the Second Lien Indenture, will be at least sufficient (1) to provide for the payment of Operation and Maintenance Expenses for the Fiscal Year and (2) to provide for the greater of (A) or (B) as follows: (A) the greater of the amounts needed to make the deposits required under the First Lien Indenture described in the immediately preceding paragraph above; or (B) the greater of the amounts needed to make the deposits required under the First Lien Indenture described in the immediately preceding paragraph above or an amount not less than 110 percent of the Aggregate First Lien Debt Service and Aggregate Second Lien Debt Service for the Bond Year commencing during such Fiscal Year, reduced by (X) any amount held in any Capitalized Interest Account for disbursement during such Bond Year to pay interest on First Lien Bonds, and (Y) any amount held in any capitalized interest account established pursuant to a Supplemental Indenture under the Second Lien Indenture for disbursement during such


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Bond Year to pay interest on Second Lien Obligations. These requirements were met at December 31, 2017.

iv) Chicago-O’Hare International Airport Fund - The Master Indenture of Trust securing Chicago O’Hare

International Airport General Airport Senior Lien Obligations requires that the City will fix and establish, and revise from time to time whenever necessary, the rentals, rates and other charges for the use and operation of O’Hare and for services rendered by the City in the operation of O’Hare in order that Revenues in each Fiscal Year, together with Other Available Moneys deposited with the Trustee with respect to that Fiscal Year and any cash balance held in the Revenue Fund on the first day of that Fiscal Year not then required to be deposited in any Fund or Account, will be at least sufficient: (i) to provide for the payment of Operation and Maintenance Expenses for the Fiscal Year; and (ii) to provide for the greater of (a) the sum of the amounts needed to make the deposits required to be made pursuant to all resolutions, ordinances, indentures and trust agreements pursuant to which all outstanding Senior Lien Obligations or other outstanding Airport Obligations are issued and secured, and (b) one and ten-hundredths times Aggregate Debt Service for the Bond Year commencing during that Fiscal Year, reduced by any proceeds of Airport Obligations held by the Trustee for disbursement during that Bond Year to pay principal of and interest on Senior Lien Obligations. This requirement was met at December 31, 2017. The Master Trust Indenture securing Chicago O’Hare International Airport Passenger Facility Charge (PFC) Obligations requires PFC Revenues, as defined, received by the City to be deposited into the PFC Revenue Fund. The City covenants to pay from the PFC Revenue Fund not later than the twentieth day of each calendar month the following amounts in the following order of priority: (1) to the Trustee for deposit in the Bond Fund, the sum required to make all of the Sub-Fund Deposits and Other Required Deposits to be disbursed from the Bond Fund [to meet debt service and debt service reserve requirements] in the calendar month pursuant to the Master Indenture; (2) to make any payments required for the calendar month with respect to Subordinated PFC Obligations; and (3) all moneys and securities remaining in the PFC Revenue Fund shall be transferred by the City (or the Trustee if it then holds the PFC Revenue Fund pursuant to the Master Indenture) to the PFC Capital Fund. The Indenture of Trust Securing Chicago O’Hare International Airport Customer Facility Charge Senior Lien Revenue Bonds requires that, as long as any Bonds remain Outstanding, in each Fiscal Year, the City shall set the amount of the CFC (when multiplied by the total number of projected Contract Days) plus projected Facility Rent at an annual level sufficient to provide sufficient funds (1) to pay principal of and interest on the Bonds due in such Fiscal Year, (2) to reimburse the Rolling Coverage Fund, the Supplemental Reserve Fund, the Debt Service Reserve Fund and any Subordinate Reserve Fund for any drawings upon such Funds over a period not to exceed twelve months, as determined by the City, (3) to provide funds necessary to pay any “yield reduction payments” or rebate amounts due to the United States under the Indenture for which funds in the Rebate Fund or the CFC Stabilization Fund are not otherwise available, (4) to maintain the balance of the CFC Stabilization Fund in an amount of no less than the CFC Stabilization Fund Minimum Requirement and to reimburse any drawings below the CFC Stabilization Fund Minimum Requirement over a period not to exceed twelve months, as determined by the City, and (5) to maintain the balance of the Operation and Maintenance Fund in an amount of no less than the Operation and Maintenance Fund Requirement and to reimburse any drawings below the Operation and Maintenance Fund Minimum Requirement over a period of not to exceed twelve months, as determined by the City.

f) No-Commitment Debt and Public Interest Loans include various special assessment, private activity

bonds and loans. These types of financings are used to provide private entities with low-cost capital financing for construction and rehabilitation of facilities deemed to be in the public interest. Bonds payable on no-commitment debt are not included in the accompanying financial statements because the City has no obligation to provide for their repayment, which is the responsibility of the borrowing entities. In addition, federal programs/grants, including Community Development Block Grants and Community Service Block Grants, provide original funding for public interest loans. Loans receivable are not included as assets because payments received on loans are used to fund new loans or other program activities in the current


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year and are not available for general City operating purposes. Loans provided to third parties are recorded as current and prior year programs/grants expenditures. Funding for future loans will be from a combination of the repayment of existing loans and additional funds committed from future programs/grants expenditures.

g) Defeased Bonds have been removed from the Statement of Net Position because related assets have been

placed in irrevocable trusts that, together with interest earned thereon, will provide amounts sufficient for payment of all principal and interest. Defeased bonds at December 31, 2017, not including principal payments due January 1, 2018, are as follows (dollars in thousands):

Amount

Defeased OutstandingGeneral Obligation Emergency Telephone System - Series 1993 ........................ 213,730$ 69,930$ General Obligation Bonds - Series 2001A ......................................................... 47,505 9,185 General Obligation Project and Refunding Bonds - Series 2002A ........................ 2,305 2,305 General Obligation Project and Refunding Bonds - Series 2003A ........................ 13,580 13,580 General Obligation Project Bonds - Series 2003C .............................................. 5,110 5,110 General Obligation Project Bonds - Series 2004A .............................................. 23,435 23,435 General Obligation Project and Refunding Bonds - Series 2005A ........................ 43,545 2,555 General Obligation Project and Refunding Bonds - Series 2005B ........................ 49,465 5,335 General Obligation Project and Refunding Bonds - Series 2006A ........................ 84,560 43,420 General Obligation Project and Refunding Bonds - Series 2007A ........................ 54,460 10,090 General Obligation Project and Refunding Bonds - Series 2007C ........................ 42,175 24,650 General Obligation Project and Refunding Bonds - Series 2008A ........................ 46,105 24,895 General Obligation Neighborhoods Alive 21 Program - Series 2003 ..................... 1,400 1,400 Lakefront Millennium Project Parking Facilities Bonds - Series 1998 .................... 149,880 43,880 Sales Tax Revenue Bonds - Series 2002 ........................................................... 110,580 109,975 Sales Tax Revenue Bonds - Series 2005 ........................................................... 68,055 68,055 Sales Tax Revenue Bonds - Series 2009A ........................................................ 68,730 67,640 Sales Tax Revenue Bonds - Series 2009B ........................................................ 2,150 2,150 Sales Tax Revenue Refunding Bonds - Series 2009C ......................................... 20,012 20,012 Sales Tax Revenue Refunding Bonds - Series 2011A ......................................... 214,340 214,340 Sales Tax Revenue Refunding Bonds - Series 2011B ......................................... 18,565 18,565 Water Revenue Second Lien Bonds - Series 2008A ........................................... 312,735 312,735 Wastewater Transmission Second Lien Revenue Bonds - Series 2008A .............. 131,055 131,055 Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2008A .... 530,170 530,170 Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2008C .... 36,255 36,255 Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2010A .... 13,645 13,645 Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2011A .... 348,075 348,075 Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2011B .... 121,905 121,905 Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2011C .... 283,925 283,925 Special Transportation Revenue Bonds - Series 2001 ........................................ 118,715 78,575 Total .............................................................................................................. 3,176,167$ 2,636,847$


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10) Pension Funds and Other Postemployment Benefits a) Pension

General Information about the Pension Plan Plan Description – Eligible City employees participate in one of four single-employer defined benefit pension plans (Plans). These Plans are: the Municipal Employees’ Annuity and Benefit Fund of Chicago (Municipal Employees’); the Laborers’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago (Laborers’); the Policemen’s Annuity and Benefit Fund of Chicago (Policemen’s); and the Firemen’s Annuity and Benefit Fund of Chicago (Firemen’s). The plans are administered by individual retirement boards of trustees comprised of City officials or their designees and of trustees elected by Plan members. Certain employees of the Chicago Board of Education participate in Municipal Employees’ or Laborers’. Each Plan issues a publicly available financial report that includes financial statements and required supplementary information that can be obtained at www.meabf.org, www.labfchicago.org, www.chipabf.org, and www.fabf.org. Benefits provided - The Plans provide retirement, disability, and death benefits as established by State law. Benefits generally vest after 10 years of credited service. Employees qualify for an unreduced retirement age minimum formula annuity based on a combination of years of service and age of retirement. Employees may also receive a reduced retirement age minimum formula annuity if they do not meet the age and service requirements for the unreduced retirement age annuity. The requirements of age and service are different for employees depending on when they first became members of their respective Plans. For all four Plans, employees who became members before January 1, 2011 are considered Tier 1 Employees. For Policemen’s and Firemen’s, those employees who became members on or after January 1, 2011 are considered Tier 2 Employees. For Municipal Employees’ and Laborers’, those employees who became members on or after January 1, 2011 but before July 6, 2017 are considered Tier 2 Employees. For Municipal Employees’ and Laborers’, those employees who became members on or after July 6, 2017 are considered Tier 3 Employees. Public Act 100-0023 (P.A. 100-0023), which established the requirements for Tier 3 employees, includes a provision for Tier 2 employees to elect to be considered as Tier 3 employees. The annuity is computed by multiplying the final average salary by a percentage ranging from 2.2 percent to 2.5 percent per year of credited service. The final average salary is the employee’s highest average annual salary for any four consecutive years within the last 10 years of credited service for participants who are Tier 1 Employees and any eight consecutive years within the last 10 years of credited service for participants who are Tier 2 Employees or Tier 3 Employees. Benefit terms provide for annual adjustments to each employee’s retirement allowance subsequent to the employees’ retirement date. For Tier 1 Employees, the annual adjustments for Municipal Employees’ and Laborers’ are 3.0 percent, compounded, and for Policemen’s and the majority of participants in Firemen’s 3.0 percent, simple, for annuitants born before January 1, 1966 and 1.5 percent, simple, born after January 1, 1966 or later. For Tier 2 Employees and Tier 3 Employees, the annual adjustments are equal to the lesser of 3.0 percent and 50 percent of CPI-U of the original benefit. Employees covered by benefit terms - At December 31, 2017, the following employees were covered by the benefit terms:

MunicipalEmployees' Laborers' Policemen's Firemen's Total

Inactive employees or beneficiaries currently receiving benefits ............... 25,383 3,703 13,628 4,878 47,592 Inactive employees entitled to but not yet receiving benefits ......... 17,549 1,469 640 77 19,735

Active employees ................................ 30,922 2,794 12,633 4,613 50,962 73,854 7,966 26,901 9,568 118,289


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Contributions – Historically State law required City contributions at statutorily, not actuarially, determined rates. State law also requires covered employees to contribute a percentage of their salaries. The City’s contribution for payment year 2017 for Municipal Employees’ and Laborers’ was calculated based on the total amount of contributions by employees to the respective Plans made in the calendar year two years prior, multiplied by 1.25 for Municipal Employees’, and 1.00 for Laborers’. For the Municipal Employees’ and Laborers’ Plans, Public Act 100-0023 (P.A. 100-0023) was enacted on July 6, 2017. P.A. 100-0023 requires the City to contribute specific amounts to the Municipal Employees’ and the Laborers’ Plans in the aggregate amounts as follows: in payment year 2018, $302.0 million; in payment year 2019, $392.0 million; in payment year 2020, $481.0 million; in payment year 2021, $571.0 million; and in payment year 2022, $660.0 million. Additionally, P.A. 100-0023 requires that the City’s contributions are at actuarially determined rates beginning in payment year 2023 and future funding be sufficient to produce a funding level of 90 % by the end of 2058. For Policemen’s and Firemen’s, Public Act 99-0506 (P.A. 99-0506) was enacted on May 31, 2016. P.A. 99-0506 requires the City to contribute specific amounts to the Policemen’s and Firemen’s Plans in the aggregate amounts as follows: in payment year 2017, $672 million; in payment year 2018, $727 million; in payment year 2019, $792 million; and in payment year 2020, $824 million. Additionally, P.A. 99-0506 requires that the City’s contributions are at actuarially determined rates beginning in payment year 2021 and future funding be sufficient to produce a funding level of 90 % by the end of 2055. The City’s contributions are budgeted in the same year as the applicable levy year for the property taxes funding the contributions. The City’s contributions are then paid to the pension funds in the following year which is when the levied property taxes are collected and paid to the City by the Cook County Treasurer.

Net Pension Liability The City’s net pension liability was measured as of December 31, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The actuarial reports were provided by each of the pension funds. Actuarial assumptions. The total pension liability in the December 31, 2017 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation ................................. 2.5% 2.25% 2.75% 2.5%Salary Increases .................... 3.5% - 7.75% (a) 3.00% (b) 3.75% (c) 3.75% (d)Investment Rate of Return ...... 7.0% (e) 7.25% (f) 7.25% 7.5%

(a) (1.50%-6.50% for 2018-2022),varying by years of service(b) Plus a service - based increase in the first 9 years(c) Plus additional percentage related to service(d) Plus additional service based increases(e) Net of investment expense(f) Net of investment expense, including inflation

Firemen'sPolicemen'sLaborers'Employees'Municipal

Post-retirement mortality rates were based on the RP-2014 Healthy Annuitant Mortality Table (Blue Collar mortality table for Laborers' and Firemen's) for males or females, as appropriate. Pre-retirement mortality rates were based on the RP-2014 Employee Mortality Table (Blue Collar mortality table for Laborers' and Firemen's). Disabled mortality rates were based on the RP-2014 Healthy Annuitant mortality table for Policemen’s and Blue Collar mortality table for Firemen’s.


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The mortality actuarial assumptions used in the December 31, 2017 valuation were adjusted based on the results of actuarial experience study for the period as noted below: Municipal Employees’ - January 1, 2012 - December 31, 2016 Laborers’ - January 1, 2012 - December 31, 2016 Policemen’s - January 1, 2009 - December 31, 2013 Firemen’s - January 1, 2012 - December 31, 2016 The long-term expected rate of return on pension plan investments was determined using the building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Municipal MunicipalAsset Class: Employees' Laborers' Policemen's Firemen's Employees' Laborers' Policemen's Firemen'sEquity .............................. - - - 60.0% - - - 7.25%Domestic equity ................ 26.0% - - - 5.60% - - - U.S. equity ....................... - 25.0% 21.0% - - 5.80% 6.10% - Non U.S. equity ................ - 20.0% 21.0% - - 5.70% 7.70% - Global low volatility equity .. - 5.0% - - - 5.00% - - International equity ............ 22.0% - - - 5.70% - - - Fixed income .................... 27.0% 20.0% 22.0% 20.0% 1.00% (0.20%) 1.90% 7.34%Hedge funds ..................... 10.0% 10.0% 5.0% - 3.60% 3.60% 4.00% - Private debt ...................... - 3.0% - - - 8.20% - - Private equity .................... 5.0% 4.0% - - 9.40% 9.40 - - Private markets ................. - - 17.0% - - - 7.40% - GAA ................................. - - 5.0% - - - 4.40% - Real estate ....................... 10.0% 10.0% 5.0% 8.0% 5.40% 5.40% 4.60% 7.62%Real assets ....................... - - 4.0% - - - 4.80% - Private Real assets ........... - 3.0% - - - 5.80% - - Other investments ............. - - - 12.0% - - - 7.70%Total ................................ 100.0% 100.0% 100.0% 100.0%

Target Allocation Long-Term Expected Real Rate of Return

Discount rate Municipal Employees’ - The discount rate used to measure the total pension liability as of December 31, 2017 was 7.0 percent, which is an increase from the discount rate of 3.91 percent used to measure the total pension liability as of December 31, 2016. The increase in the discount rate was mainly a result of the increased projected contributions as specified by Public Act 100-0023. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.0 percent. The projection of cash flows used to determine the discount rate assumed plan member contributions will be made according to the contribution rate applicable for each member’s tier and that employer contributions will be made as specified by Public Act 100-0023. For this purpose, only employer contributions that are intended to fund benefits of current plan members and their beneficiaries are included. Projected employer contributions and contributions from future plan members that are intended to fund the service cost of future plan members and their beneficiaries are not included. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine total pension liability. The valuation as of December 31, 2016, projected that the pension plan’s fiduciary net position would be available to make payments through 2023. As a result of the increase in


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projected contributions, the pension plan’s fiduciary net position is now projected to be available to make all projected future benefit payments of current plan members. Laborers’ - A Single Discount Rate of 7.07 percent was used to measure the total pension liability as of December 31, 2017, which is an increase from the discount rate of 4.17 percent used to measure the total pension liability as of December 31, 2016. The increase in the discount rate was mainly a result of the increased projected contributions as specified by Public Act 100-0023. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.25 percent and a municipal bond rate of 3.31 percent (based on the weekly rate closest to but not later than the measurement date of the “state and local bonds” rate from Federal Reserve statistical release (H.15)). The projection of cash flows used to determine this Single Discount Rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made under the statutory funding policy. Based on these assumptions, the pension plan’s fiduciary net position and future contributions were sufficient to finance the benefit payments through the year 2071. As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through the year 2071, and the municipal bond rate was applied to all benefit payments after that date. The valuation as of December 31, 2016, projected that the pension plan’s fiduciary net position would be available to make payments through 2027. As a result of the increase in projected contributions, the pension plan’s fiduciary net position is now projected to be available to make all projected future benefit payments of current plan members through 2071. Policemen’s - A Single Discount Rate of 7.0 percent was used to measure the total pension liability. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.25 percent (based on the weekly rate closest to but not later than the measurement date of the “state and local bonds” rate from Federal Reserve statistical release (H.15)). The projection of cash flows used to determine this Single Discount Rate assumed that plan member contributions and employer contributions are made in accordance with the statutory requirements. Based on these assumptions, the pension plan's fiduciary net position and future contributions were sufficient to finance benefit payments through the year 2070. As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through the year 2070, and the municipal bond rate was applied to all benefit payments after that date. Firemen’s - A Single Discount Rate of 7.23 percent was used to measure the total pension liability. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.5 percent and a municipal bond rate of 3.31 percent (based on the weekly rate closest to but not later than the measurement date of the “state and local bonds” rate from Federal Reserve statistical release (H.15)). The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between the statutory contribution rates and the member rate. Based on these assumptions, the Plan's fiduciary net position and future contributions were sufficient to finance future benefit payments only through the year 2070. As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through the year 2070, and the municipal bond rate was applied to all benefit payments after that date.


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Changes in the Net Pension Liability (dollars in thousands):

Total pension liabilityService cost ........................................ $ 572,534 $ 80,232 * $ 237,333 * $ 93,367 * $ 983,466 Interest ............................................... 915,711 154,047 917,720 371,622 2,359,100 Benefit changes ................................... - 150 - - 150 Differences between expected and actual experience ......... (177,755) (62,178) (299,923) 26,954 (512,902) Assumption changes ............................ (7,431,191) (1,074,754) 238,975 414,219 (7,852,751) Benefit payments including refunds ....... (888,174) (157,050) (747,891) (306,098) (2,099,213) Pension plan administrative expense ..... - (3,985) (4,843) (3,172) (12,000)

(7,008,875) (1,063,538) 341,371 596,892 (7,134,150)

Total pension liability - Beginning ........... 23,291,271 3,693,645 13,113,091 5,149,258 45,247,265 Total pension liability - Ending (a) .......... $ 16,282,396 $ 2,630,107 $ 13,454,462 $ 5,746,150 $ 38,113,115

Plan fiduciary net positionContributions-employer ........................ $ 261,764 $ 35,457 $ 494,483 $ 228,453 $ 1,020,157 Contributions-employee ........................ 134,765 17,411 103,011 47,364 302,551 Net investment income (loss) ............... 610,515 207,981 412,190 140,570 1,371,256 Benefit payments including refunds of employee contribution ....... (888,174) (157,050) (747,891) (306,098) (2,099,213) Administrative expenses ....................... (6,473) (3,985) (4,843) (3,172) (18,473) Other .................................................. 5,394 - 97 22 5,513

117,791 99,814 257,047 107,139 581,791 4,436,227 1,167,740 2,865,019 1,019,014 9,488,000

$ 4,554,018 $ 1,267,554 $ 3,122,066 $ 1,126,153 $ 10,069,791 $ 11,728,378 $ 1,362,553 $ 10,332,396 $ 4,619,997 $ 28,043,324

* Includes pension plan administrative expense

MunicipalEmployees' Policemen's Firemen'sLaborers' Total

Net pension liability-ending (a)-(b) ............Plan fiduciary net position - ending (b) ......Plan fiduciary net position - beginning ......Net change in plan fiduciary net position ..

Net change in total pension liability ..........Total pension liability:

Changes in Actuarial Assumptions: Changes under P.A. 100-0023 resulted in an increase in future required contributions to the Municipal Employees’ and Laborers’ pension plans resulting in an increase in the discount rate for the Municipal Employees’ and Laborers’ Pension Plans as discussed in the discount rate section above.

The change in the discount rate and other assumptions decreased the net pension liability by $7.4 billion for Municipal Employees’ and $1.1 billion for Laborers’. This change is being amortized into expense over a 5 year period for Municipal Employees’ and 4 year period for Laborers’. Sensitivity of the net pension liability to changes in the discount rate Municipal Employees’ - The following presents the net pension liability as of December 31, 2017, calculated using the discount rate of 7.00 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.00 percent) or 1 percentage point higher (8.00 percent) than the current rate (dollars in thousands):


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CurrentNet pension liability December 31, 2017 1% Decrease Discount Rate 1% IncreaseMunicipal Employees' discount rate ............ 6.00% 7.00% 8.00%Municipal Employees' net pension liability ... 13,807,800$ 11,728,378$ 10,006,090$

Laborers’ - The following presents the net pension liability as of December 31, 2017, calculated using the discount rate of 7.07 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.07 percent) or 1 percentage point higher (8.07 percent) than the current rate (dollars in thousands):

CurrentNet pension liability December 31, 2017 1% Decrease Discount Rate 1% IncreaseLaborers' discount rate ............................. 6.07% 7.07% 8.07%Laborers' Employees' net pension liability ... 1,680,428$ 1,362,553$ 1,096,678$

Policemen’s - The following presents the net pension liability as of December 31, 2017, calculated using the discount rate of 7.00 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.00 percent) or 1 percentage point higher (8.00 percent) than the current rate (dollars in thousands):

CurrentNet pension liability December 31, 2017 1% Decrease Discount Rate 1% IncreasePolicemen's Employees' discount rate ........... 6.00% 7.00% 8.00%Policemen's Employees' net pension liability ... 11,944,827$ 10,332,396$ 8,978,202$

Firemen’s - The following presents the net pension liability as of December 31, 2017, calculated using the discount rate of 7.23 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.23 percent) or 1 percentage point higher (8.23 percent) than the current rate (dollars in thousands):

CurrentNet pension liability December 31, 2017 1% Decrease Discount Rate 1% IncreaseFiremen's Employees' discount rate ............. 6.23% 7.23% 8.23%Firemen's Employees' net pension liability .... 5,303,879$ 4,619,997$ 4,046,477$

Pension plan fiduciary net position

Detailed information about the pension plan’s fiduciary net position is available in the separately issued Pension Plans reports. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2017, the City recognized pension expense of $2.5 billion. At December 31, 2017, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources (dollars in thousands):


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Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense/(benefit) as follows (dollars in thousands):

Year ended December 31:2018 .............................. $ 57,074 $ (201,159) $ 11,046 $ 97,948 2019 .............................. 57,074 (332,885) 11,046 97,948 2020 .............................. (1,712,937) (179,004) (32,801) 82,590 2021 .............................. (1,581,044) (24,877) (36,612) 53,063 2022 .............................. - - (9,102) 73,356 Total .............................. $ (3,179,833) $ (737,925) $ (56,423) $ 404,905

Employees'Municipal

Laborers' Policemen's Firemen's

Deferred outflows and deferred inflows related to changes in proportionate share of contributions

For the year ended December 31, 2017, the City reported a pension benefit of $48.4 million, deferred inflows of $204.2 million and deferred outflows of $5.5 million related to changes in its proportionate share of contributions. This deferred amount will be recognized as pension expense/(benefit) over a period of four years.

Payable to the Pension Plans At December 31, 2017, the City reported a payable of $690.3 million for the outstanding amount of contributions to the Pension Plans required for the year ended December 31, 2017.

b) Other Post Employment Benefits (OPEB) - Pension Funds

Applicable state law authorized the four respective Pension Funds (Policemen’s, Firemen’s, Municipal Employees’, and Laborers’) to provide a fixed monthly dollar subsidy to each annuitant who had elected coverage under any City health plan through December 31, 2016. After that date, no Pension Fund subsidies were authorized by state law. Underwood litigation - In 2017, the Illinois Appellate Court held that current and future annuitants hired prior to the execution of a court approved settlement agreement in 2003 in the City of Chicago v. Korshak (those who retired prior to August 23, 1989 and their dependents, Korshak group) litigation, and subject to certain eligibility requirements, are entitled to receive lifetime fixed rate monthly subsidies equal to the subsidy amounts provided in the 1983 and 1985 amendments to the Pension Code. Those subsidies are, for Policemen’s and Firemen’s, $21 per month or $55 per month, depending on the annuitant’s Medicare eligibility, and for Municipal Employees’ and Laborers’, $25 per month for those annuitants who are 65 or older with at least 15 years of service. The issue of whether the Pension Funds or the City is obligated to make the subsidy payments to the annuitants is still subject to litigation. The 1983 and 1985 statutes state that the Pension Funds are obligated to make the payments but none of the Pension Funds included the liability for

Differences between expected and actual experience ............ $ - $ 262,410 $ - $ 63,241 $ 1,180 $ 300,297 $ 38,351 $ 3,983 Changes of assumptions ........... 3,484,702 6,292,305 151,720 793,688 272,073 - 433,139 49,019 Net difference between projected and actual earnings on pension plan investments .. - 109,820 66,791 99,507 138,623 168,002 38,717 52,300 Total ........................................ $ 3,484,702 $ 6,664,535 $ 218,511 $ 956,436 $ 411,876 $ 468,299 $ 510,207 $ 105,302

Firemen'sPolicemen'sLaborers'Municipal Employees'Deferred DeferredDeferred DeferredDeferred Deferred

Outflows of Inflows ofResources Resources

Deferred DeferredOutflows of Inflows ofResources Resources

Outflows of Inflows ofResources ResourcesResources

Outflows of Inflows ofResources


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the monthly subsidies in their respective actuarial valuation reports under GASB 43. For that reason, the City has included the liability for the monthly fixed subsidies for this limited group under GASB 45 and is reported together with the Retirees’ Settlement Health Plan liability.

c) Other Post Employment Benefits - City Obligation

Retirees’ Settlement Health Plan - As of January 1, 2014, the City of Chicago agreed to provide a healthcare plan with a subsidy of 55% of the cost of that plan to those City annuitants who retired prior to August 23, 1989, for their lifetimes. The cost of health benefits is recognized as an expenditure in the accompanying financial statements as claims are reported and are funded on a pay-as-you-go basis. The net expense to the City in 2017 for providing these benefits was $22.7 million. Of that amount, $14.8 million was attributed to runoff claims for the retirees who no longer received subsidized healthcare from the City after December 31, 2016, and $7.9 million was attributed to the class of retirees and their dependents (those who retired prior to August 23, 1989), who will continue to receive lifetime subsidized healthcare from the City. The average number of annuitants in this latter group is 2,978 and a total of 3,378 covered lives including dependents. Duty Disabled retirees who have statutory pre-63/65 coverage will continue to have fully subsidized coverage under the active health plan until age 65.

Special Benefits under the Collective Bargaining Agreements (CBA) - Under the terms of the latest collective bargaining agreements for the Fraternal Order of Police and the International Association of Fire Fighters, certain employees who retire after attaining age 55 with the required years of service are permitted to enroll themselves and their dependents in the healthcare benefit program offered to actively employed members. They may keep this coverage until they reach the age of Medicare eligibility. CBA special early retirement benefits cease at Medicare eligibility age. An extension of the CBA was negotiated (and finalized in 2014) governing the contract period (thru June 30, 2016 for Police Captains, Sergeants and Lieutenants and June 30, 2017 for remaining Police and Fire). As of the date of this report, negotiations are ongoing regarding new agreements which cover the retiree health benefits. Under the “maintenance of effort” protocols, the provisions of the prior agreement are honored until a new agreement is signed. It is not known whether the CBA special health benefits will be specifically eliminated, modified, or extended at this time. Therefore the actuarial valuation assumes the expiration of the early retirement special benefits as of the December of the contract expiration year, but includes the liabilities for continuation of payments to those members who would have already retired under the CBA as of December 31 of that year. Based upon prior history, the negotiations are assumed to be concluded by December 31, 2019. CBA retirees were required to contribute 2% of their pension for health care coverage beginning at the end of 2017.

Funding Policy - No assets are accumulated or dedicated to funding the retiree health plan benefits.

Annual OPEB Cost and Net OPEB Obligation - The City’s annual other post-employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution “ARC” of the employer. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and to amortize any unfunded actuarial liabilities over a period of ten years.

The following table shows the components of the City’s annual OPEB costs for the year for the Health Plan and CBA Special Benefits, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation. The Net OPEB Obligation is the amount entered upon the City’s Statement of Net Position as of year end as the net liability for the other post-employment benefits – the Health Plan. The amount of the annual cost that is recorded in the Statement of Changes in Net Position for 2017 is the annual OPEB cost (expense).


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Retiree CBASettlement SpecialHealth Plan Benefits Total

Contribution Rates:City ............................................................... Pay-As-You-Go Pay-As-You-Go Pay-As-You-GoPlan Members ................................................ N/A N/A N/AAnnual Required Contribution ........................... 50,871$ 66,091$ 116,962$ Interest on Net OPEB Obligation ...................... 81 4,935 5,016 Adjustment to Annual Required Contribution ..... (307) (18,724) (19,031) Annual OPEB Cost ......................................... 50,645 52,302 102,947 Contributions Made ......................................... 38,967 43,548 82,515

Increase/(Decrease) in Net OPEB Obligation ..... 11,678 8,754 20,432 Net OPEB Obligation, Beginning of Year .......... 2,698 164,511 167,209 Net OPEB Obligation, End of Year ................... 14,376$ 173,265$ 187,641$

Annual OPEB Cost and Contributions Made(dollars in thousands)

The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2017 are as follows (dollars in thousands):

Fiscal Year Annual Percentage of Annual Net OPEBEnded OPEB Cost OPEB Cost Contributed Obligation

Settlement Plan12/31/2017 50,645$ 76.9% 14,376$ 12/31/2016 38,469 130.1 2,698 12/31/2015 43,645 133.5 14,280

CBA Special Benefits

12/31/2017 52,302$ 83.3% 173,265$ 12/31/2016 45,560 87.0 164,511 12/31/2015 48,195 79.4 158,571

Total12/31/2017 102,947$ 80.2% 187,641$ 12/31/2016 84,029 106.7 167,209 12/31/2015 91,840 105.1 172,851

Schedule of Contributions,OPEB Costs and Net Obligations

Funded Status and Funding Progress - As of January 1, 2017, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $842.9 million, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was approximately $2,627.7 million and the ratio of the unfunded actuarial accrued liability to the covered payroll was 32.1 percent.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revisions as the results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presents, as required, (unaudited) supplementary information following the notes to the financial statements.


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UnfundedActuarial Actuarial Actuarial ActuarialValuation Value of Accrued Accrued Liability Funded Covered

Date Assets Liability (AAL) (UAAL) Ratio Payroll

Settlement Plan12/31/2016 -$ 331,496$ 331,496$ 0% 2,627,662$ 12.6 %

CBA Special Benefits12/31/2016 -$ 511,429$ 511,429$ 0% 1,547,102$ 33.1 %

Total12/31/2016 -$ 842,925$ 842,925$ 0% 32.1 %

UAALas a

Percentage ofCovered Payroll

Schedule of Funding Progress (dollars in thousands)

Actuarial Method and Assumptions – Projections of benefits for financial reporting purposes are based on the substantive plan (the plan understood by the employer and plan members) and included the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial method and assumptions used include techniques that are designed to reduce the effects of short term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long term perspective of the calculations.

For the Health Plan Benefits the entry age normal actuarial cost method was used. The actuarial assumptions included an annual healthcare cost trend rate of 8.0% for 2018, reduced by decrements to an ultimate rate of 5.0% in 2029. Rates included a 2.5% inflation assumption. The plan has not accumulated assets and does not hold assets in a segregated trust. However, the funds expected to be used to pay benefits are assumed to be invested for durations which will yield an annual return rate of 3.0%. The remaining Unfunded Accrued Actuarial Liability is being amortized as a level dollar amount over ten years. The benefits include lifetime benefits for the class of retirees (those who retired prior to August 23, 1989, Korshak group) and their dependents, lifetime fixed subsidy benefits for the annuitant category (except Korshak) hired prior to 2003, Non-CBA health benefits provided to duty disability participants under the active health plan payable to age 63/65.

For the Special Benefits under the CBA for Police and Fire, the contract’s expiration dates are of June 30, 2016 (for Police Captains, Sergeants and Lieutenants) and June 30, 2017 for all other Police and Fire. The expectations consistent with the City’s posture on sunsetting retiree health benefits, was that the CBA benefits would expire at the end of the current contract period and not be renewed. Negotiations are ongoing and expected to continue, based upon prior history, for two to three years. Since the City is required to honor the provisions of the existing contract until a new agreement is negotiated under the “Maintenance of Effort” protocol, the valuation has included liabilities for CBA benefits as if the actual expiration of the contracts was extended to 12/31/2019. This would mean liabilities are included only for payments on behalf of early retired, already retired and in pay status as of December 31 of the assumed expiration year of the contract (2019). The entry age normal method was selected. The actuarial assumptions included an annual health care cost trend rate of 8.0% in 2018, reduced by decrements to an ultimate rate of 5.0% in 2029. Rates included a 2.5% inflation assumption. The plan has not accumulated assets and does not hold assets in a segregated trust. The funds expected to be used to pay benefits are assumed to be invested for durations which will yield an annual return rate of 3.0%. The remaining Unfunded Accrued Actuarial Liability is being amortized as a level dollar amount over ten years.


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Settlement CBAHealth Plan Special Benefits

Actuarial Valuation Date ............ December 31, 2016 December 31, 2016

Actuarial Cost Method ............... Entry Age Normal Entry Age Normal

Amortization Method ................. Level Dollar, open Level Dollar, open

Remaining Amortization Period . 10 years 10 years

Asset Valuation Method ............ Market Value Market Value

Actuarial Assumptions:Investment Rate of Return ........ 3.0% 3.0%Projected Salary Increases ....... 2.5% 2.5%

1.9% for 2017 then 1.9% for 2017 thenHealthcare Inflation Rate ........... 8.0% to 5.0% in 2029 8.0% to 5.0% in 2029

Summary of Assumptions and Methods

11) Risk Management

The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; certain benefits for and injuries to employees, and natural disasters. The City provides worker’s compensation benefits and employee health benefits under self-insurance programs except for insurance policies maintained for certain Enterprise Fund activities. The City uses various risk management techniques to finance these risks by retaining, transferring and controlling risks depending on the risk exposure.

Risks for O’Hare, Midway, and certain other major properties, along with various special events, losses from certain criminal acts committed by employees and public official bonds are transferred to commercial insurers. Claims have not exceeded the purchased insurance coverage in the past three years. Accordingly, no liability is reported for these claims. All other risks are retained by the City and are self-insured. The City pays claim settlements and judgments from the self-insured programs. Uninsured claim expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The General Fund is primarily used to record all non-Enterprise Fund claims. The estimated portion of non-Enterprise Fund claims not yet settled has been recorded in the Governmental Activities in the Statement of Net Position as claims payable along with amounts related to deferred compensatory time and estimated liabilities for questioned costs. As of December 31, 2017, the total amount of non-Enterprise Fund claims was $528.8 million and Enterprise Fund was $75.4 million. This liability is the City’s best estimate based on available information. Changes in the reported liability for all funds are as follows (dollars in thousands):

2017 2016

Balance, January 1 ............................. 585,372$ 572,360$

Claims incurred andchange in estimates ......................... 501,767 666,444

Claims paid on current andprior year events .............................. (482,877) (653,432)

Balance, December 31 ........................ 604,262$ 585,372$

12) Expenditure of Funds and Appropriation of Fund Balances

The City expends funds by classification as they become available, and “Restricted” funds are expended first. If/when City Council formally sets aside or designates funds for a specific purpose, they are considered “Committed.” The Mayor (or his/her designee) may in this capacity, also set aside or designate funds for specific purposes and all of these funds will be considered “Assigned.” Any remaining funds, which are not specifically


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allocated in one or more of the previous three categories, are considered “Unassigned” until such allocation is completed. In addition to the categories above, any amounts that will be used to balance a subsequent year’s budget will be considered “Assigned” as Budgetary Stabilization funds. The amounts may vary from fiscal year to fiscal year or depending on the City’s budgetary condition, or may not be designated at all. The funds may be assigned by the Mayor or his designee, up to the amount of available “Unassigned” fund balance at the end of the previous fiscal year.

Fund Balance Classifications

On the fund financial statements, the Fund Balance consists of the following (dollars in thousands):

General

Federal, State and

Local Grants

Special Taxing Areas

Service Concession and Reserve

Bond, Note Redemption and Interest

STSC Debt Service

Community Development Improvement

Projects

Other Governmental

FundsNonspendable Purpose:

Inventory ................................................. 25,945$ -$ -$ -$ -$ -$ -$ -$ STSC Blended Balance * ........................ - - - - - 769,064 - -

Restricted Purpose:Capital Projects ....................................... - - 1,347,294 - - - 346,000 98,714 Grants ..................................................... - 7,438 - - - - - - Debt Service ........................................... - - - - - 26,003 - 74,988 General Government .............................. - - - - - - - 3,057

Committed Purpose:Budget and Credit Rating Stabilization ... - - - 668,287 - - - - Repair, Maintenance and City Services .. - - - - - - - 79,267 Pension Contributions Reserve .............. - - - - - - - 42,935

Assigned Purpose:Future obligations ................................... 16,900 - - - - - - - Special Projects ...................................... 53,000 - - - - - - - Assigned for Future Appropriated Fund Balance ................. 37,000 - - - - - - -

155,516 (248,840) - (1,513,194) (328,993) - - (38,423) Total Government Fund Balance ............ 288,361$ (241,402)$ 1,347,294$ (844,907)$ (328,993)$ 795,067$ 346,000$ 260,538$

Unassigned .................................................

* The STSC is a blended component unity of the City. The STSC Blended Balance above, represents the sale of sales tax revenues that will be amortized over the life of the related bonds. As discussed in the Fund Deficit footnote 3c, the deficit within the City's Bonds, Note Redemption and Interest Fund represents this sale that has been deferred and will be funded through the recognition of the related amortization.

At the end of the fiscal year, total encumbrances amounted to $16.9 million for the General Operating Fund, $34.7 million for the Special Taxing Areas Fund, $7.0 million for the Capital Projects Fund and $24.8 million for the Non Major Special Revenue Fund.

13) Deferred Outflows and Inflows of Resources

In accordance with Government Accounting Standards Board Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, the City reports deferred outflows of resources in the Statement of Net Position in a separate section following Assets. Similarly, the City reports deferred inflows of resources in the Statement of Net Position in a separate section following Liabilities.


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The components of the deferred outflows of resources and deferred inflows of resources at December 31, 2017 are as follows (dollars in thousands):

Deferred Outflows of Resources:Deferred outflows from pension activities ... $ 3,906,856 $ 718,440 Changes in proportionate share of pension contributions ......................... 5,521 228,233 Unamortized deferred bond refunding costs ............................. 177,493 223,908 Derivatives ............................................... - 24,319

$ 4,089,870 $ 1,194,900

Deferred Inflows of Resources:Deferred inflows from pension activities ..... $ 6,696,345 $ 1,498,226 Changes in proportionate share of pension contributions ......................... 204,189 17,279 Long-Term lease and Service concession arrangements ........... 1,513,194 1,589,697

$ 8,413,728 $ 3,105,202

Total Deferred Outflows of Resources ..........

Total Deferred Inflows of Resources .............

GovernmentalActivities

Business-typeActivities

The components of the deferred inflows of resources related to the governmental funds at December 31, 2017 are as follows (dollars in thousands):

General

Federal, State and

Local Grants

Special Taxing Areas

Service Concession

and Reserve

Bond, Note Redemption

and Interest Pension

Other Governmental

Funds

Total Governmental

FundsGovernmental Funds:Deferred inflow of resources:Property Taxes ........................ -$ -$ 459,590$ -$ 421,872$ 681,800$ 19,706$ 1,582,968$ Utility Taxes ............................. - - - - - - 4,796 4,796 Grants .................................... - 243,150 - - - - - 243,150 Charges for Services ............... 1,968 - - - - - - 1,968 Long-term Lease and Concession Agreements ........ - - - 1,513,194 - - - 1,513,194 Total Governmental Funds ..... 1,968$ 243,150$ 459,590$ 1,513,194$ 421,872$ 681,800$ 24,502$ 3,346,076$

14) Commitments and Contingencies

The City is a defendant in various pending and threatened individual and class action litigation relating principally to claims arising from contracts, personal injury, property damage, police conduct, alleged discrimination, civil rights actions, and other matters. City management believes that the ultimate resolution of these matters will not have a material adverse effect on the financial position of the City. The City participates in a number of federal- and state-assisted grant programs. These grants are subject to audits by or on behalf of the grantors to assure compliance with grant provisions. Based upon past experience and management’s judgment, the City has made provisions in the General Fund for questioned costs and other amounts estimated to be disallowed. City management expects such provision to be adequate to cover actual amounts disallowed, if any. As of December 31, 2017, the Enterprise Funds have entered into contracts for approximately $666.7 million for construction projects.


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The City's pollution remediation obligation of $35.0 million is primarily related to Brownfield redevelopment projects. These projects include removal of underground storage tanks, cleanup of contaminated soil, and removal of other environmental pollution identified at the individual sites. The estimated liability is calculated using the expected cash flow technique. The pollution remediation obligation is an estimate and subject to changes resulting from price increases or reductions, technology, or changes in applicable laws or regulations.

15) Concession Agreements

The major fund entitled Service Concession and Reserve Fund is used for the purpose of accounting for the deferred inflows associated with governmental fund long-term lease and concession transactions. Deferred inflows are amortized over the life of the related lease and concession agreements. Proceeds from these transactions may be transferred from this fund in accordance with ordinances approved by the City Council that define the use of proceeds. In February 2009, the City completed a $1.15 billion concession agreement to allow a private operator to manage and collect revenues from the City’s metered parking system for 75 years. The City received an upfront payment of $1.15 billion which was recognized as a deferred inflow that will be amortized and recognized as revenue over the term of the agreement. The City recognizes $15.3 million of revenue for each year through 2083.

In December 2006, the City completed a long-term concession and lease of the City’s downtown underground public parking system. The concession granted Chicago Loop Parking, LLC (CLP) the right to operate the garages and collect parking and related revenues for the 99-year term of the agreement. The City received an upfront payment of $563.0 million of which $347.8 million was simultaneously used to purchase three of the underground garages from the Chicago Park District. The City recognized a deferred inflow that will be amortized and recognized as revenue over the term of the lease. The City recognizes $5.7 million of revenue for each year through 2105. In January 2014, CLP assigned all of its interests in the concession and lease agreement to LMG2, LLC, the designee of its lenders, in lieu of foreclosure by the lenders on their leasehold mortgage on the underground garages.

In January 2005, the City completed a long-term concession and lease of the Skyway. The concession granted a private company the right to operate the Skyway and to collect toll revenue from the Skyway for the 99-year term of the agreement. The City received an upfront payment of $1.83 billion; a portion of the payment ($446.3 million) advance refunded all of the outstanding Skyway bonds. The City recognized a deferred inflow of $1.83 billion that will be amortized and recognized as revenue over the 99-year term of the agreement. The City recognizes $18.5 million of revenue related to this transaction for each year through 2103. Skyway land, bridges, other facilities and equipment continue to be reported on the Statement of Net Position and will be depreciated, as applicable, over their useful lives. The deferred inflow of the Skyway is reported in the Proprietary Funds Statement of Net Position. In February 2016, the owners of the Skyway concessionaire sold their ownership interests in the concessionaire to a new entity. Pursuant to the concession and lease agreement for the Skyway, the City approved the transfer of ownership interests. In May 2016, the concessionaire of the City’s downtown underground public parking garages sold its concession interest in the garages to Millennium Parking Garages, LLC. Pursuant to the concession and lease agreement for the garages, the City approved the transfer of the concession interest.

16) Tax Abatements GASB Statement No. 77, Tax Abatement Disclosures (“GASB 77”), requires governments that enter into tax abatement agreements to disclose: (1) Brief descriptive information concerning the agreement; (2) The gross dollar amount of taxes abated during the period; and 3) Commitments made by government, other than to abate taxes, that are part of the tax abatement agreement.


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Tax Abatement Agreements Entered into Directly by the City The Boeing Company

The City entered into a Tax Reimbursement Payment Agreement with The Boeing Company (“Boeing”) as of November 1, 2001. The relocation of Boeing constituted a substantial public benefit from its creation of not less than 500 permanent FTE jobs and through payment of various taxes and governmental charges and was expected to foster further economic growth and development in the City.

Boeing may submit to the City for each year of the agreement an annual reimbursement form for reimbursement of an amount equal to the portion of the Boeing General Real Estate Taxes paid during such calendar year to the City, the Board of Education of the City of Chicago and the City Library Fund, in aggregate. In the form, Boeing must certify compliance with the terms of the agreement including, without limitation, Boeing continues to meet certain operational criteria, occupies not less than 125,000 rentable square feet at the building as its corporate headquarters, has at least $25.0 billion in annual world-wide revenues, and employs a minimum of 500 full time employees within Chicago.

The above listed real estate taxes are reimbursed by way of an annual payment to Boeing in an amount equal to the allocable share of the real estate taxes. The City is entitled to terminate the agreement and/or recover certain payments if Boeing does not comply with the terms of the agreement. For the 2017 reporting period, the tax reimbursement to Boeing totaled $1.8 million.

Tax Increment Financing

The City adopted certain ordinances approving various redevelopment plans pursuant to provisions of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-7 4.4-1 (the “Act”). The redevelopment plans designate a “redevelopment project area” under the Act, and adopt tax increment allocation financing for each redevelopment project area. In an effort to promote redevelopment and finance construction projects in the redevelopment project areas to eradicate blighted conditions, the City uses tax increment financing to reimburse developers for the costs of the TIF-funded improvements pursuant to the terms and conditions of redevelopment agreements entered into by the City and a developer. Projects range from new construction to redevelopment and expansion initiatives throughout the City. The maximum reimbursable amount is set forth in each agreement. If the total project cost is lower than the project budget established in the agreement, the reimbursable amount will be prorated.

For the 2017 reporting period, the amount of property tax revenue forgone by the City due to the agreements under the Tax Increment Allocation Redevelopment Act amounts to $71.3 million on an accrual basis of accounting. Tax Abatement Agreements Entered Into By Other Governments

Cook County

Cook County provides tax reductions under numerous programs with individuals, local businesses, and developers. The objective of the agreements is to encourage the development and rehabilitation of new and existing industrial and commercial property, reutilization of abandoned property, and increase multi-family residential affordable rental housing throughout Cook County by offering a real estate tax incentive. An eligibility application must be filed prior to commencement of a project and include a resolution from the municipality where the real estate is located. Once the project has been completed, the applicant must file an Incentive Appeal Form with the County Assessor’s Office. Upon approval by the County Assessor’s Office and based on the property classification, the applicant is eligible to receive one of the following tax incentives: • Class 7a, 7b, and C: Property will be assessed at 10% of market value for the first 10 years, 15% in the 11th

year and 20% in the 12th year


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• Class 7c: Property will be assessed at 10% of market value for the first 3 years, 15% in the 4th year and 20% in the 5th year.

• Class 6b: Property will be assessed at 10% of the market value for 10 years and for any subsequent 10-year renewal periods; if not renewed, 15% in the 11th year and 15% in the 12th year.

• Class L: Renewable properties will be assessed at 10% of market value for the first 10 years and for any subsequent 10-year renewal periods; if not renewed, 15% in the 11th year and 20% in the 12th year. Commercial properties will be assessed at 10% of market value for the first 10 years, 15% in the 11th year and 20% in the 12th year.

In the absence of the incentive, the property tax would be assessed at 25% of its market value. This incentive constitutes a substantial reduction in the level of assessment and results in significant tax savings for eligible applicants. For the 2017 reporting period, the amount of property tax revenue forgone by the City due to these incentives is estimated at $12 million.

17) Subsequent Events

Ratings

In February 2018, Kroll Bond Rating Agency, Inc. (KBRA) upgraded the rating of the City’s General Obligation bonds from BBB+ to A with a stable outlook. In February 2018, Fitch Ratings, KBRA, Moody’s, and Standard and Poor’s withdrew their ratings on the City’s Sales Tax revenue bonds as all of the outstanding Sales Tax bonds were defeased. Bonds In February 2018, the Sales Tax Securitization Corporation sold Sales Tax Securitization Bonds, Series 2018AB ($680.3 million). The 2018A bonds ($376.3 million) were issued at interest rates between 4.0% and 5.0% with mandatory sinking fund or maturity dates between January 1, 2031 and January 1, 2048. The 2018B bonds ($304.0 million) were issued at an interest rate of 3.82% with mandatory sinking fund or maturity dates between January 1, 2039 and January 1, 2048. Proceeds will be used to provide funds for the City to refund certain of the City’s outstanding General Obligation bonds and to pay costs of issuance. Commercial Paper and Lines of Credit In May 2018, the City amended terms the General Obligation Line of Credit Agreement and extended the expiration date to May 31, 2020. As of December 31, 2017, the outstanding balance for the City’s General Obligation Line of Credit was $77.2 million. Since January 1, 2018, the City has not executed any additional draws and has paid down $38.6 million. The City’s repayment obligation under the line of credit is a general obligation of the City. Purchase and Sale of Assets The 2FM headquarters complex at 1685 N. Throop was sold to developer Sterling Bay for $104.7 million in February 2018. As part of the same transaction, the City sold a portion of the former Kennedy King College campus to Sterling Bay for an additional $1.3 million. A portion of the proceeds will be used to construct a new, $37.0 million maintenance headquarters at 6800 S. Wentworth Ave. In January 2018, 30.4 acres of vacant land located at 4301 W. Chicago Avenue was acquired for $9.6 million for a new Public Safety Training Academy.


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Lease and Maintenance Agreements

On March 28 2018, the City Council approved the new Airline Use and Lease Agreement (“AULA”) for airlines operating at O’Hare. Apart from provisions regarding rates and charges that will become operative on July 1, 2018, the AULA went into effect as of May 12, 2018. The AULA provides that the aggregate of all rentals, fees and charges to be paid by the signatory airlines shall be sufficient to pay for the net cost of operating, maintaining and developing O’Hare. Specifically, AULA will allow the City to commence a $6.1 billion terminal expansion program (known as the Terminal Area Plan or “TAP”) that includes construction of several new gates, in addition to $2.4 billion in additional pre-approved capital projects. The City is currently in the process of executing the AULA with each of the signatory airlines. On April 18, 2018, the City Council authorized the City to enter into an agreement (the “City-CATCo Agreement”), with the Chicago Airlines Terminal Consortium (“CATCo”) for the maintenance and operation of City-owned equipment in Terminals 1, 2, 3 and 5 at O’Hare and the provision of other aeronautical services to the City. Previously, CATCo was known as CICA Terminal Corporation and maintained equipment only for use by airlines operating in Terminal 5. The City-CATCo Agreement provides that CATCo’s costs in providing services to the City thereunder constitute O&M expenses allocable to signatory airlines under the AULA. The City-CATCo Agreement will be executed in July 2018 and will be effective retroactive to May 12, 2018. On April 18, 2018, the City Council authorized the City to enter into an agreement with ORD Fuel Company, LLC (“Fuel System Lease Agreement”) under which the parties agree that the fuel system is to be used for the receipt, storage, delivery, distribution, handling, and dispensing of aircraft fuel and automotive fuel for ground services equipment and other vehicles at O’Hare and the carrying on of activities reasonably necessary or convenient in connection with the Fuel System Lease Agreement. ORD Fuel Company, LLC’s performance pursuant to the Fuel System Lease Agreement is anticipated to improve operations and efficiency throughout O’Hare.

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REQUIRED

SUPPLEMENTARY

INFORMATION

105

REQUIRED SUPPLEMENTARY INFORMATIONCITY OF CHICAGO, ILLINOISSCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOSLast Three Fiscal Years (dollars are in thousands)

Municipal Employees':Total pension liability

Service cost ........................................................................................... 572,534$ 619,743$ 226,816$ Interest .................................................................................................. 915,711 878,369 909,067 Benefit changes .................................................................................... - - 2,140,009 Differences between expected and actual experience .......................... (177,755) (127,119) (109,835) Assumption changes ............................................................................. (7,431,191) (578,920) 8,711,755 Benefit payments including refunds ...................................................... (888,174) (859,672) (826,036) Pension plan administrative expense .................................................... - - - Net change in total pension liability .................................................. (7,008,875)$ (67,599)$ 11,051,776$

23,291,271 23,358,870 12,307,094 16,282,396$ 23,291,271$ 23,358,870$

Plan fiduciary net positionContributions-employer ......................................................................... 261,764$ 149,718$ 149,225$ Contributions-employee ........................................................................ 134,765 130,391 131,428 Net investment income .......................................................................... 610,515 281,419 114,025 Benefit payments including refunds of employee contribution .............. (888,174) (859,672) (826,036) Administrative expenses ....................................................................... (6,473) (7,056) (6,701) Other ..................................................................................................... 5,394 - - Net change in plan fiduciary net position ......................................... 117,791$ (305,200)$ (438,059)$

4,436,227 4,741,427 5,179,486 4,554,018$ 4,436,227$ 4,741,427$

Net pension liability - ending (a)-(b) ................................................. 11,728,378$ 18,855,044$ 18,617,443$

Plan fiduciary net position as a percentage of the total pension liability .................................................................................... 27.97 % 19.05 % 20.30 %

1,686,533$ 1,646,939$ 1,643,481$

Employer's net pension liability as a percentage of covered payroll .................................................................................... 695.41 % 1,144.85 % 1,132.81 %

*Covered payroll is the amount in force as of the actuarial valuation date and likely differs from actual payroll paid during fiscal year.

Note:Beginning with fiscal year 2015, the City will accumulate ten years of data.

2017 2016 2015

Total pension liability - ending (a) .............................................................Total pension liability - beginning ..............................................................

Covered payroll* ........................................................................................

Plan fiduciary net position - beginning .......................................................Plan fiduciary net position - ending (b) ......................................................

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REQUIRED SUPPLEMENTARY INFORMATIONCITY OF CHICAGO, ILLINOISSCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - ContinuedLast Three Fiscal Years (dollars are in thousands)

Laborers': 2016 2015Total pension liability

Service cost * ........................................................................................ 80,232$ 82,960$ 38,389$ Interest .................................................................................................. 154,047 150,166 153,812 Benefit changes .................................................................................... 150 - 384,033 Differences between expected and actual experience .......................... (62,178) (30,428) (46,085) Assumption changes ............................................................................. (1,074,754) (62,905) 1,175,935 Benefit payments including refunds ...................................................... (157,050) (154,683) (152,530) Pension plan administrative expense .................................................... (3,985) (4,080) (3,844) Net change in total pension liability .................................................. (1,063,538)$ (18,970)$ 1,549,710$

3,693,645 3,712,615 2,162,905 2,630,107$ 3,693,645$ 3,712,615$

Plan fiduciary net positionContributions-employer ......................................................................... 35,457$ 12,603$ 12,412$ Contributions-employee ........................................................................ 17,411 17,246 16,844 Net investment income .......................................................................... 207,981 57,997 (22,318) Benefit payments including refunds of employee contribution .............. (157,050) (154,683) (152,530) Administrative expenses ....................................................................... (3,985) (4,080) (3,844) Other ..................................................................................................... - - - Net change in plan fiduciary net position ......................................... 99,814$ (70,917)$ (149,436)$

1,167,740 1,238,657 1,388,093 1,267,554$ 1,167,740$ 1,238,657$



208,442$ 208,155$ 204,773$

Employer's net pension liability as a percentage of covered payroll .................................................................................... 653.68 % 1,213.47 % 1,208.15 %

* Includes pension plan administrative expense** Covered payroll is the amount in force as of the actuarial valuation date and likely differs from actual payroll paid during fiscal year.


2017

Total pension liability - beginning ..............................................................Total pension liability - ending (a) .............................................................


Covered payroll ** .....................................................................................

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REQUIRED SUPPLEMENTARY INFORMATIONCITY OF CHICAGO, ILLINOISSCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - ContinuedLast Three Fiscal Years (dollars are in thousands)

Policemen's: 2016 2015Total pension liability

Service cost * ........................................................................................ 237,333$ 220,570$ 213,585$ Interest .................................................................................................. 917,720 851,098 832,972 Benefit changes .................................................................................... - 606,250 - Differences between expected and actual experience .......................... (299,923) 1,801 (105,969) Assumption changes ............................................................................. 238,975 112,585 - Benefit payments including refunds ...................................................... (747,891) (707,196) (676,777) Pension plan administrative expense .................................................... (4,843) (4,750) (4,508) Net change in total pension liability .................................................. 341,371$ 1,080,358$ 259,303$

13,113,091 12,032,733 11,773,430 13,454,462$ 13,113,091$ 12,032,733$

Contributions-employer ......................................................................... 494,483$ 272,428$ 572,836$ Contributions-employee ........................................................................ 103,011 101,476 107,626 Net investment income .......................................................................... 412,190 142,699 (5,334) Benefit payments including refunds of employee contribution .............. (747,891) (707,196) (676,777) Administrative expenses ....................................................................... (4,843) (4,750) (4,508) Other ..................................................................................................... 97 1,413 3,092 Net change in plan fiduciary net position ......................................... 257,047$ (193,930)$ (3,065)$

2,865,019 3,058,949 3,062,014 3,122,066$ 2,865,019$ 3,058,949$



1,150,406$ 1,119,527$ 1,086,608$

Employer's net pension liability as a percentage of covered payroll .................................................................................... 898.15 % 915.39 % 825.85 %



2017

Plan fiduciary net position


Covered payroll** ......................................................................................

Total pension liability - ending (a) .............................................................Total pension liability - beginning ..............................................................

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REQUIRED SUPPLEMENTARY INFORMATIONCITY OF CHICAGO, ILLINOISSCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - ConcludedLast Three Fiscal Years (dollars are in thousands)

Firemen's: 2016 2015Total pension liability

Service cost * ........................................................................................ 93,367$ 94,115$ 87,203$ Interest .................................................................................................. 371,622 342,085 338,986 Benefit changes .................................................................................... - 227,213 - Differences between expected and actual experience .......................... 26,954 24,110 (7,981) Assumption changes ............................................................................. 414,219 (74,373) 176,282 Benefit payments including refunds ...................................................... (306,098) (286,759) (278,017) Pension plan administrative expense .................................................... (3,172) (3,217) (3,149) Net change in total pension liability .................................................. 596,892$ 323,174$ 313,324$

5,149,258 4,826,084 4,512,760 5,746,150$ 5,149,258$ 4,826,084$

Contributions-employer ......................................................................... 228,453$ 154,101$ 236,104$ Contributions-employee ........................................................................ 47,364 48,960 46,552 Net investment income .......................................................................... 140,570 60,881 7,596 Benefit payments including refunds of employee contribution .............. (306,098) (286,759) (278,017) Administrative expenses ....................................................................... (3,172) (3,217) (3,149) Other ..................................................................................................... 22 (53) 7 Net change in plan fiduciary net position ......................................... 107,139$ (26,087)$ 9,093$

1,019,014 1,045,101 1,036,008 1,126,153$ 1,019,014$ 1,045,101$



469,407$ 478,471$ 465,232$

Employer's net pension liability as a percentage of covered payroll .................................................................................... 984.22 % 863.22 % 812.71 %



2017

Plan fiduciary net position


Covered payroll ** .....................................................................................

Total pension liability - beginning ..............................................................Total pension liability - ending (a) .............................................................

109

REQUIRED SUPPLEMENTARY INFORMATIONCITY OF CHICAGO, ILLINOISSCHEDULE OF CONTRIBUTIONSLast Ten Fiscal Years (dollars are in thousands)

Municipal Employees':

Years EndedDecember 31,

2008 $ 360,387 $ 146,803 $ 213,584 $ 1,543,977 9.51 %2009 413,509 148,047 265,462 1,551,973 9.54 %2010 483,948 154,752 329,196 1,541,388 10.04 %2011 611,756 147,009 464,747 1,605,993 9.15 %2012 690,823 148,859 541,964 1,590,794 9.36 %2013 820,023 148,197 671,826 1,580,289 9.38 %2014 839,039 149,747 689,292 1,602,978 9.34 %2015 677,200 149,225 527,975 1,643,481 9.08 %2016 961,770 149,718 812,052 1,646,939 9.09 %2017 1,005,457 261,764 743,693 1,686,533 15.52 %

* The funding method mandated by the Illinois Pension Code is insufficient to avoid insolvency, and without a change, the Fund is projected to become insolvent within the next 10 years (during 2025). Therefore, the actuarially determined contribution is comprised of an employer normal cost payment and a 30-year, level dollar amortization payment on the unfunded actuarial accrued liability.

** Covered payroll is the amount in force as of the actuarial valuation date and likely differs from actual payroll paid during fiscal year.

Laborers':

ActuariallyYears Ended DeterminedDecember 31, Contributions *

2008 $ 17,652 $ 15,233 $ 2,419 $ 216,744 7.03 %2009 33,518 14,627 18,891 208,626 7.01 %2010 46,665 15,352 31,313 199,863 7.68 %2011 57,259 12,779 44,480 195,238 6.55 %2012 77,566 11,853 65,713 198,790 5.96 %2013 106,199 11,583 94,616 200,352 5.78 %2014 106,019 12,161 93,858 202,673 6.00 %2015 79,851 12,412 67,439 204,773 6.06 %2016 117,033 12,603 104,430 208,155 6.05 %2017 124,226 35,457 88,769 208,442 17.01 %

* The LABF Statutory Funding does not conform to Actuarial Standards of Practice, therefore, the actuarially determined contribution is equal to the normal cost plus an amount to amortize the unfunded liability using dollar payments and a 30 year open amortization period.


Contributions asa percentage of

Contribution CoveredPayroll

CoveredDeficiency Payroll **

ActuariallyDetermined

Contributions* PayrollCovered

Payroll **ContributionDeficiency

Covered

Contributionsin Relation to

the ActuariallyDeterminedContribution

Contributions asa percentage of

DeterminedContribution

the Actuarially

Contributionsin Relation to

110

REQUIRED SUPPLEMENTARY INFORMATIONCITY OF CHICAGO, ILLINOISSCHEDULE OF CONTRIBUTIONS - ContinuedLast Ten Years (dollars are in thousands)

Policemen's:


2008 $ 318,235 $ 172,836 $ 145,399 $ 1,023,581 16.89 %2009 339,488 172,044 167,444 1,011,205 17.01 %2010 363,625 174,501 189,124 1,048,084 16.65 %2011 402,752 174,035 228,717 1,034,404 16.82 %2012 431,010 197,885 233,125 1,015,171 19.49 %2013 474,177 179,521 294,656 1,015,426 17.68 %2014 491,651 178,158 313,493 1,074,333 16.58 %2015 785,501 575,928 209,573 1,086,608 53.00 %2016 785,695 273,840 511,855 1,119,527 24.46 %2017 910,938 494,580 416,358 1,150,406 42.99 %

* The PABF Statutory Funding does not conform to Actuarial Standards of Practice; therefore, for fiscal years 2015 and after, the actuarially determined contribution is equal to the normal cost plus a 30-year level dollar amortization of the unfunded actuarial liability. Prior to 2015 the actuarially determined contribution was equal to the "ARC" which was equal to normal cost plus a 30-year open level percent amortization of the unfunded actuarial liability.


Firemen's:


2008 $ 189,941 $ 81,258 $ 108,683 $ 396,182 20.51 %2009 203,867 89,212 114,655 400,912 22.25 %2010 218,388 80,947 137,441 400,404 20.22 %2011 250,056 82,870 167,186 425,385 19.48 %2012 271,506 81,522 189,984 418,965 19.46 %2013 294,878 103,669 191,209 416,492 24.89 %2014 304,265 107,334 196,931 460,190 23.32 %2015 323,545 236,104 87,441 465,232 50.75 %2016 333,952 154,101 179,851 478,471 32.21 %2017 372,845 228,453 144,392 469,407 48.67 %

* The historically FABF Statutory Funding does not conform to Actuarial Standards of Practice, therefore, the Actuarially Determined Contribution is equal to the normal cost plus an amount to amortize the unfunded liability using level dollar payments and a 30 year amortization period. Amounts for fiscal years prior to 2015 were based on the "ARC" which was equal to normal cost plus an amount to amortize the unfunded liability using a 30-year open period level dollar amortization.


Contributionsin Relation to Contributions as

the Actuarially a percentage ofDetermined Contribution Covered Covered

Contribution Covered Covered

Contribution

Contributions

Deficiency Payroll ** Payroll

Contribution Deficiency Payroll ** Payroll

in Relation to Contributions as the Actuarially a percentage of

Determined

111

REQUIRED SUPPLEMENTARY INFORMATIONCITY OF CHICAGO, ILLINOISSCHEDULE OF CONTRIBUTIONS - Concluded

Actuarial Methods Municipal and Assumptions: Employees' Laborers' Policemen's Firemen's

12/31/2017 (a) 12/31/2017 (b) 12/31/2017 12/31/2017Entry age normal Entry age normal Entry age normal Entry age normal5-yr. Smoothed 5-yr. Smoothed 5-yr. Smoothed 5-yr. Smoothed

Market Market Market MarketActuarial assumptions:

2.50% 2.25% 2.75% 2.50%3.50% - 7.75% (c) 3.00% (d) 3.75% (e) 3.75% (e)

7.0% (f) 7.25% (g) 7.25% 7.50%(h) (i) (j) (i)(k) (l) (m) (n)(o) (p) (q) (q)

(a) Actuarially determined contribution amount is determined as of December 31, with appropriate interest to the middle of the year.(b) Actuarially determined contribution rates are calculated as of December 31, which is 12 months prior to the end of the fiscal year in which contributions are reported.(c) (1.50%-6.50% for 2018-2022), varying by years of service.(d) Plus a service-based increase in the first 9 years.(e) Salary increase rates based on age-related productivity and merit rates plus inflation.(f) Net of investment expense.(g) Net of investment expense, including inflation.(h) For employees first hired prior to January 1, 2011, rates of retirement are based on the recent experience of the Fund (effective December 31, 2017).

For employees first hired on or after January 1, 2011 and before July 6, 2017, rates of retirement for each age from 62 to 80 were used (effective December 31, 2011).For employees first hired on or after July 6, 2017, rates of retirement for each age from 62 to 80 were used (effective December 31, 2017).

(i) Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the December 31, 2017, actuarial valuation pursuant to an experiencestudy of the period January 1, 2012, through December 31, 2016.

(j) Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the December 31, 2014, actuarial valuation pursuant to anexperience study of the period January 1, 2009, through December 31, 2013.

(k) Post-retirement mortality rates were based on the RP-2014 Healthy Annuitant Mortality Tables, set forward two years for males and one year for females, andprojected generationally using scale MP-2016. Pre-retirement mortality rates were based on 120% of the RP-2014 Employee Mortality Tables projectedgenerationally using scale MP-2016.

(l) Post Retirement Mortality: Scaling factors of 117% for males, and 102% for females of the RP-2014 Blue Collar Healthy Annuitant mortality table, sex distinct, withgenerational mortality improvement using MP-2017 2-dimensional mortality improvement scales. No adjustment is made for post-disabled mortality.Pre Retirement Mortality: Scaling factors of 109% for males, and 103% for females of the RP-2014 Blue Collar Employee mortality table, sex distinct, withgenerational mortality improvement using MP-2017 2-dimensional mortality improvement scales.

(m) Post-Retirement Healthy mortality rates: Sex distinct Retirement Plans 2014 Healthy Annuitant mortality table weighted 108% for males and 97% for females. Pre-Retirement mortality rates: Sex distinct Retirement Plans 2014 Total Employee mortality table weighted 85% for males and 115% for females. Disabled Mortality: Sex distinct Retirement Plans 2014 Healthy Annuitant mortality table weighted 115% for males and 115% for females

(n) Post Retirement Mortality: Scaling factors of 106% for males, and 98% for females of the RP-2014 Blue Collar Healthy Annuitant mortality table, sex distinct, withgenerational mortality improvement using MP-2017 2-dimensional mortality improvement scales.Disabled Mortality: Scaling factors of 107% for males, and 99% for females of the RP-2014 Blue Collar Healthy Annuitant mortality table, sex distinct, with generational mortality improvement using MP-2017 2-dimensional mortality improvement scales.Pre-Retirement Mortality: Scaling factors of 92% for males, and 100% for females of the RP-2014 Blue Collar Employee mortality table, sex distinct, withgenerational mortality improvement using MP-2017 2-dimensional mortality improvement scales.Future mortality improvements in pre- and post-retirement mortality are reflected by projecting the base mortality tables back from the year 2014 to the year 2006using the MP-2014 projection scale and projecting from 2006 using the MP-2017 projection scale.

(o) Other assumptions: Same as those used in the December 31, 2017, actuarial funding valuations.(p) The actuarial valuation is based on the statutes in effect as of December 31, 2017. Benefit changes as a result of Public Act 100-0023 were recognized in the

Total Pension Liability as of December 31, 2017.(q) The actuarial valuation is based on the statutes in effect as of December 31, 2017.

Other information .....................................

Actuarial valuation date................................Actuarial cost method...................................Asset valuation method................................

Inflation .....................................................Salary increases .......................................

Retirement Age ........................................Mortality ....................................................

Investment rate of return ..........................

112

REQUIRED SUPPLEMENTARY INFORMATIONCITY OF CHICAGO, ILLINOISSCHEDULE OF OTHER POSTEMPLOYMENT BENEFITS FUNDING PROGRESSLast Three Fiscal Years (dollars are in thousands)

Actuarial UnfundedAccrued Actuarial

Actuarial Liability AccruedActuarial Value (AAL) Liability Funded CoveredValuation of Assets Entry Age (UAAL) Ratio Payroll

Date ( a ) ( b ) ( b-a ) ( a/b ) ( c )

City of Chicago

Settlement Plan 2015 ...................... 12/31/2014 - 311,748$ 311,748$ - % 2,487,787 12.53 % 2016 ...................... 12/31/2015 - 254,910 254,910 - 2,563,649 9.94 2017 ...................... 12/31/2016 - 331,496 331,496 - 2,627,662 12.62

CBA Special Benefits 2015 ...................... 12/31/2014 - 468,889$ 468,889$ - % 1,438,428 32.60 % 2016 ...................... 12/31/2015 - 460,612 460,612 - 1,499,552 30.72 2017 ...................... 12/31/2016 - 511,429 511,429 - 1,547,102 33.06

(( b-a ) / c )

Unfunded(Surplus)AAL as a

Percentageof Covered

Payroll

113

COMBINING AND

INDIVIDUAL FUND STATEMENTS

GENERAL FUND

114

Schedule A-1CITY OF CHICAGO, ILLINOISGENERAL FUNDSCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017(Amounts are in Thousands of Dollars)

LOCAL TAX REVENUE

UTILITY TAX:$ 121,000 $ 121,000 $ 124,681 $ 3,681

98,200 98,200 95,389 (2,811) 98,020 98,020 101,892 3,872 90,300 90,300 88,311 (1,989) 29,500 29,500 28,706 (794)

437,020 437,020 438,979 1,959

SALES TAX:326,040 326,040 229,861 (96,179)

TRANSPORTATION TAX:138,400 138,400 135,363 (3,037) 49,040 49,040 54,230 5,190 54,000 54,000 85,406 31,406

241,440 241,440 274,999 33,559

TRANSACTION TAX:166,100 166,100 161,737 (4,363) 222,040 222,040 265,724 43,684

6,800 6,800 6,757 (43) 394,940 394,940 434,218 39,278

RECREATION TAX:143,150 143,150 172,617 29,467

450 450 443 (7) 32,700 32,700 32,631 (69) 1,330 1,330 1,303 (27)

19,910 19,910 21,254 1,344 423 423 554 131

23,600 23,600 24,338 738 221,563 221,563 253,140 31,577

BUSINESS TAX:110,320 110,320 131,609 21,289

4,400 4,400 5,603 1,203 9,200 9,200 5,642 (3,558)

123,920 123,920 142,854 18,934 1,744,923 1,744,923 1,774,051 29,128

Gas ......................................................................Electric ................................................................

Total Utility Tax ..................................................

Home Rule Retailers' Occupation .......................

Total Business Tax ............................................

Vehicle Fuel ........................................................Ground Transportation ........................................Total Transportation Tax ...................................

Boat Mooring .......................................................

Motor Vehicle Lessor ..........................................

Automatic Amusement ........................................Liquor ..................................................................

Off Track Betting .................................................

TOTAL LOCAL TAX REVENUE ........................

Variance

(Negative)FinalOriginal Actual Positive

Parking ................................................................

Cable Television ..................................................

Foreign Fire Insurance ........................................

Soft Drink ............................................................Total Recreation Tax .........................................

Hotel ....................................................................

Cigarette ..............................................................

Real Property ......................................................Personal Property Lease .....................................

Shopping Bag Tax ...............................................

Amounts

Amusement .........................................................

Budget

Total Transaction Tax ........................................

Telecommunication .............................................Commonwealth Edison .......................................

Budget

115

Schedule A-1 - ContinuedCITY OF CHICAGO, ILLINOISGENERAL FUNDSCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017(Amounts are in Thousands of Dollars)

INTERGOVERNMENTAL REVENUE STATE INCOME TAX:

$ 267,350 $ 267,350 $ 239,894 $ (27,456) 132,268 132,268 148,342 16,074 399,618 399,618 388,236 (11,382)

STATE SALES TAX:372,800 372,800 270,499 (102,301)

STATE AUTO RENTAL TAX:4,400 4,400 4,137 (263)

FEDERAL/STATE GRANTS:1,800 1,800 2,514 714

778,618 778,618 665,386 (113,232) LOCAL NON-TAX REVENUE INTERNAL SERVICE:

84,737 84,737 84,737 - 27,791 27,791 25,144 (2,647) 33,236 33,236 33,236 - 7,931 7,931 6,957 (974)

21,279 21,279 18,409 (2,870) 45,718 45,718 45,718 - 95,286 95,286 93,818 (1,468) 19,089 19,089 18,620 (469) 4,715 4,715 4,715 - 3,921 3,921 4,239 318 6,894 6,894 5,045 (1,849) 1,946 1,946 558 (1,388)

842 842 115 (727) 5,500 5,500 6,427 927

358,885 358,885 347,738 (11,147) LICENSES AND PERMITS:

12,900 12,900 12,663 (237) 20,400 20,400 22,286 1,886 43,400 43,400 43,169 (231) 5,900 5,900 6,074 174

45,400 45,400 49,308 3,908 128,000 128,000 133,500 5,500

Original

Income ....................................................................Personal Property Replacement .............................

TOTAL INTERGOVERNMENTAL REVENUE ......

Chicago-O'Hare International Airport Fund .............Vehicle Tax Fund ....................................................

Municipal Auto Rental .............................................

Total Licenses and Permits ...................................

Business License ...................................................Building Permits ......................................................Fines and Penalties .................................................

Alcoholic Liquor Dealers' License ...........................

Grants ......................................................................

Other .......................................................................

Miscellaneous - Planning, Purchasing, etc. .............

Other .......................................................................

Water Fund .............................................................

Total Internal Service .............................................

Chicago Midway International Airport Fund .............

Federal Funds - Pensions .......................................

Transportation .........................................................

Emergency Communication Fund ...........................

Public Safety - Police, Fire and OEMC ...................

Intergovernmental Vouchers (IV) ............................

Variance

(Negative)PositiveActual

AmountsBudgetFinal

Department of Fleet and Facility Management .......

Sewer Fund .............................................................

Total State Income Tax .........................................

Budget

Federal Funds .........................................................

State Retailers' Occupation .....................................

116

Schedule A-1 - ConcludedCITY OF CHICAGO, ILLINOISGENERAL FUNDSCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017(Amounts are in Thousands of Dollars)

LOCAL NON-TAX REVENUE - Concluded FINES:

$ 358,800 $ 358,800 $ 344,925 $ (13,875) INVESTMENT INCOME:

1,500 1,500 6,978 5,478 CHARGES FOR SERVICES:

12,500 12,500 12,682 182 605 605 283 (322)

70,500 70,500 70,035 (465) 61,240 61,240 63,955 2,715 6,300 6,300 6,272 (28)

25,000 25,000 28,921 3,921 176,145 176,145 182,148 6,003

MUNICIPAL UTILITIES:21,800 21,800 7,654 (14,146) 21,800 21,800 7,654 (14,146)

LEASES, RENTALS AND SALES:19,000 19,000 10,785 (8,215) 3,000 3,000 868 (2,132)

42 42 16 (26) 300 300 1,012 712

13,661 13,661 13,204 (457) 36,003 36,003 25,885 (10,118)

MISCELLANEOUS:150 150 184 34

101,380 101,780 71,010 (30,770) 101,530 101,930 71,194 (30,736)

1,182,663 1,183,063 1,120,022 (63,041)

Budgeted Prior Year's Surplus37,000 53,000 - (53,000) 37,000 37,000 180,227 143,227

$ 3,780,204 $ 3,796,604 $ 3,739,686 $ (56,918)

Rentals and Leases ............................................

Total Municipal Utilities ......................................

TOTAL LOCAL NON-TAX REVENUE ..............

Reimbursement of Current Expense ..................

and Reappropriations ..........................................

Other ...................................................................

Vacation of Streets and Alleys ............................Sale of Impounded Autos ....................................Sale of Materials .................................................

Total Revenues ................................................. Transfers In .............................................................

Total Leases, Rentals and Sales .......................

Property Damage ................................................

Total Miscellaneous ...........................................Other ...................................................................

Variance

(Negative)PositiveActual

Information ..........................................................

Budget

Sale of Land and Buildings .................................

Total Charges for Services ................................

Parking ................................................................

Sanitation ............................................................Safety ..................................................................

AmountsBudget

Inspection ............................................................

Interest on Investments .......................................

Fines, Forfeitures and Penalties .........................

FinalOriginal

117

Schedule A-2CITY OF CHICAGO, ILLINOISGENERAL FUNDSCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017

GENERAL GOVERNMENT

OFFICE OF THE MAYOR - 01 -$ 6,279,625 $ 6,279,625 $ 6,726,291

229,458 229,458 214,362 27,830 27,830 27,778 30,000 30,000 30,000

Total ............................................................ 6,566,913 6,566,913 6,998,431

OFFICE OF THE INSPECTOR GENERAL - 03 -4,903,182 4,903,182 4,214,738

649,464 649,464 649,452 5,025 5,025 5,020

14,635 14,635 14,335 25,000 25,000 25,000

980 980 980 Total ............................................................ 5,598,286 5,598,286 4,909,525

OFFICE OF BUDGET AND MANAGEMENT - 05 -2,935,512 2,935,512 2,807,745

33,986 33,986 24,985 1,000 1,000 497 5,800 5,800 1,698

Total ............................................................ 2,976,298 2,976,298 2,834,925

DEPARTMENT OF INNOVATION AND TECHNOLOGY - 06 -

8,959,990 8,959,990 7,620,621 11,130,446 11,130,446 10,182,616

4,050 4,050 3,039 23,650 23,650 2,978

Total ............................................................ 20,118,136 20,118,136 17,809,254

CITY COUNCIL - 15 -15,763,286 15,763,286 15,258,534

70,150 70,150 67,405 1,000 1,000 -

43,000 43,000 42,337 1,000 1,000 -

4,850,000 4,850,000 4,530,250

92,072 92,072 21,666 To Be Expended at the Direction of the Chairman of the Committee on Finance .....................

2005.0200-Travel ...........................................................2005.0700-Contingencies ..............................................

2005.9008-Aldermanic Expense Allowance ...................2005.0982-Order of the City Council ..............................

2005.9010-Legal, Technical, Medical and Professional

Reporters and Contractual Services: Services, Appraisals, Consultants, Printers, Court

2005.0200-Travel ...........................................................

2005.0300-Commodities and Materials .........................

2005.0100-Contractual Services ....................................

2005.0000-Personnel Services ......................................2005.0100-Contractual Services ....................................

2005.0000-Personnel Services ......................................

2005.0700-Contingencies ..............................................

2005.0200-Travel ...........................................................


2005.0000-Personnel Services ......................................




2005.0100-Contractual Services ....................................

CITY COUNCIL COMMITTEES

2005.0200-Travel ...........................................................

2005.0200-Travel ...........................................................

2005.0400-Equipment ....................................................


BudgetOriginalBudget

FinalActual

118

Schedule A-2 ContinuedCITY OF CHICAGO, ILLINOISGENERAL FUNDSCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017

GENERAL GOVERNMENT - Continued

CITY COUNCIL COMMITTEES - Continued

CITY COUNCIL - 15 - Concluded

$ 4,000 $ 4,000 $ - Total ................................................................. 20,824,508 20,824,508 19,920,192

COMMITTEE ON FINANCE - 15 -1,770,860 1,770,860 1,922,269

190,400 190,400 148,538 8,000 8,000 -

51,500 51,500 40,497 100 100 -

50,000 50,000 -

50,000 50,000 -

92,500 92,500 28,203 Total ................................................................. 2,213,360 2,213,360 2,139,507

COUNCIL OFFICE OF FINANCIAL ANALYSIS - 15 -274,056 274,056 295,560 27,160 27,160 -

Total ................................................................. 301,216 301,216 295,560

COMMITTEE ON THE BUDGET AND GOVERNMENT OPERATIONS - 15 -

492,468 492,468 802,379 15,000 15,000 14,998 12,000 12,000 11,981 9,500 9,500 9,496

15,000 15,000 14,999 Total ................................................................. 543,968 543,968 853,853

Budget Budget ActualFinalOriginal

Pro Tempore of the City Council ...................................

Committee on Finance ..................................................

Chairman of the Committee on Finance .......................

2010.0200-Travel .............................................................

2010.0000-Personnel Services ........................................2010.0100-Contractual Services ......................................

2010.0300-Commodities and Materials ............................2010.0700-Contingencies .................................................

2005.9072-Contingent and Other Expenses for Corporate Purposes not Otherwise Provided for: To Be Expended under the Direction of the President

2010.9005-For the Payment of Legal Fees Pursuant to Sec. 2-152-170 of the Municipal Code: To Be Expended under the Direction of the

2010.9006-Legal Assistance to The City Council: To Be Expended under the Direction of the

Chairman of the Committee on Finance .......................

2214.0700-Contingencies .................................................

2012.0700-Contingencies .................................................

2214.0400-Equipment ......................................................


2012.0000-Personnel Services ........................................

2214.0300-Commodities and Materials ............................

2010.9010-Legal, Technical, Medical and Professional Services, Appraisals, Consultants, Printers, Court Reporters and Contractual Services: To Be Expended at the Direction of the

119





COMMITTEE ON AVIATION - 15 -$ 108,046 $ 108,046 $ 107,781

200 200 - 500 500 - 750 750 -

Total ................................................................. 109,496 109,496 107,781

COMMITTEE ON LICENSE AND CONSUMERPROTECTION - 15 -

107,246 107,246 122,994 7,500 7,500 4,292

10,500 10,500 499 Total ................................................................. 125,246 125,246 127,785

COMMITTEE ON PUBLIC SAFETY - 15 -159,355 159,355 157,091

1,000 1,000 990 1,000 1,000 969

500 500 492 Total ................................................................. 161,855 161,855 159,542

COMMITTEE ON HEALTH AND ENVIRONMENTAL PROTECTION - 15 -

90,300 90,300 90,517 2,006 2,006 301

800 800 555 500 500 -

Total ................................................................. 93,606 93,606 91,373

COMMITTEE ON COMMITTEES, RULESAND ETHICS - 15 -

105,068 105,068 124,312 40,000 40,000 38,845

500 500 270 Total ................................................................. 145,568 145,568 163,427

COMMITTEE ON ECONOMIC, CAPITAL AND TECHNOLOGY DEVELOPMENT - 15 -

102,575 102,575 98,998 1,000 1,000 712

500 500 - 1,000 1,000 -

Total ................................................................. 105,075 105,075 99,710

2220.0100-Contractual Services ......................................2220.0300-Commodities and Materials ............................


2235.0300-Commodities and Materials ............................2235.0700-Contingencies .................................................

2240.0100-Contractual Services ......................................

2240.0700-Contingencies .................................................

2220.0700-Contingencies .................................................





2255.0700-Contingencies .................................................










120





COMMITTEE ON EDUCATION AND CHILD DEVELOPMENT - 15 -

$ 163,483 $ 163,483 $ 166,812 3,000 3,000 1,762 2,000 2,000 -

Total ................................................................. 168,483 168,483 168,574

STANDARDS - 15 -310,574 310,574 329,199 15,300 15,300 12,289 74,700 74,700 74,699

Total ................................................................. 400,574 400,574 416,187

COMMITTEE ON HOUSING AND REAL ESTATE - 15 -198,164 198,164 196,442

8,000 8,000 7,478 Total ................................................................. 206,164 206,164 203,920

COMMITTEE ON HUMAN RELATIONS - 15 -92,556 92,556 84,125 1,000 1,000 350

Total ................................................................. 93,556 93,556 84,475

COMMITTEE ON WORKFORCE DEVELOPMENTAND AUDIT - 15 -

503,565 503,565 498,471 30,000 30,000 2,532 5,000 5,000 7,778

Total ................................................................. 538,565 538,565 508,781

CITY COUNCIL LEGISLATIVE REFERENCEBUREAU - 15 -

362,144 362,144 352,290 4,000 4,000 4,000

Total ................................................................. 366,144 366,144 356,290

TOTAL CITY COUNCIL COMMITTEES ......... 26,397,384 26,397,384 25,696,957



2260.0700-Contingencies .................................................











COMMITTEE ON ZONING, LANDMARKS AND BUILDING

2280.0000-Personnel Services ........................................2280.0300-Commodities and Materials ............................

121




CITY CLERK - 25 -$ 2,586,818 $ 2,586,818 $ 2,531,707

506,047 506,047 391,012 56,290 56,290 40,461

Total ................................................................. 3,149,155 3,149,155 2,963,180

DEPARTMENT OF FINANCE - 27 -City Comptroller

2,801,459 2,801,459 2,447,878 48,718 48,718 34,530 2,386 2,386 80

17,920 17,920 823 Total ................................................................. 2,870,483 2,870,483 2,483,311

DEPARTMENT OF FINANCE - 27 -Accounting and Financial Reporting

4,685,632 4,685,632 4,697,147 771,732 771,732 616,363

3,000 3,000 2,876 15,000 15,000 9,159

Total ................................................................. 5,475,364 5,475,364 5,325,545

DEPARTMENT OF FINANCE - 27 -Financial Strategy and Operations

5,705,951 5,705,951 5,322,900 1,053,327 1,053,327 644,806

4,200 4,200 3,181 64,300 64,300 14,600 90,000 90,000 26,145

Total ................................................................. 6,917,778 6,917,778 6,011,632

DEPARTMENT OF FINANCE - 27 -Revenue Services and Operations

24,103,475 24,103,475 21,022,523 28,822,452 28,822,452 25,962,282

10,000 10,000 964 204,159 204,159 171,942 150,000 150,000 -

Total ................................................................. 53,290,086 53,290,086 47,157,711

TOTAL FINANCE ............................................ 68,553,711 68,553,711 60,978,199


2020.0300-Commodities and Materials ............................2020.0200-Travel .............................................................

2020.0400-Machinery and Equipment ..............................




2005.0100-Contractual Services ......................................2005.0300-Commodities and Materials ............................


2012.0200-Travel .............................................................


2015.0100-Contractual Services ......................................2015.0000-Personnel Services ........................................

2011.0200-Travel .............................................................2011.0300-Commodities and Materials ............................



2015.0400-Equipment ......................................................

2015.0200-Travel .............................................................

122




CITY TREASURER - 28 -$ 884,725 $ 884,725 $ 726,176

650,488 650,488 572,939 15,000 15,000 356 6,500 6,500 5,178

Total ................................................................. 1,556,713 1,556,713 1,304,649

DEPARTMENT OF ADMINISTRATIVEHEARINGS - 30 -

3,180,187 3,180,187 3,058,339 5,374,378 5,374,378 4,834,073

2,000 2,000 847 34,504 34,504 27,397

Total ................................................................. 8,591,069 8,591,069 7,920,656

DEPARTMENT OF LAW - 31 -25,582,962 25,582,962 24,053,791 2,827,601 2,827,601 2,727,575

98,908 98,908 78,410 113,317 113,317 106,032

Total ................................................................. 28,622,788 28,622,788 26,965,808

DEPARTMENT OF HUMAN RESOURCES - 33 -5,939,510 5,939,510 5,009,957

436,518 436,518 418,843 2,560 2,560 480

29,775 29,775 17,758 210,000 210,000 209,995

Total ................................................................. 6,618,363 6,618,363 5,657,033

DEPARTMENT OF PROCUREMENT SERVICES - 35 -5,993,845 5,993,845 5,730,338

682,618 682,618 572,185 10,090 10,090 4,382 21,635 21,635 17,280

Total ................................................................. 6,708,188 6,708,188 6,324,185

DEPARTMENT OF FLEET AND FACILITY MANAGEMENT

BUREAU OF FINANCE AND ADMINISTRATION - 38 -2,955,090 2,955,090 2,822,653

651,723 651,723 592,624 45,500 45,500 37,774

Total ................................................................. 3,652,313 3,652,313 3,453,051

2005.0200-Travel .............................................................



2005.0200-Travel .............................................................












2103.0100-Contractual Services ......................................2103.0000-Personnel Services .......................................

2005.0200-Travel .............................................................

2005.9067-For Physical Exams .......................................

2005.0200-Travel .............................................................




123




$ 33,540,371 $ 33,540,371 $ 31,596,694 26,471,552 26,471,552 25,822,097

16,000 16,000 7,012 4,044,575 4,044,575 3,989,348

Total ................................................................. 64,072,498 64,072,498 61,415,151

3,667,460 3,667,460 3,582,392 14,743,395 14,743,395 14,418,041 38,045,945 38,045,945 29,898,688

57,340 57,340 55,758

446,347 446,347 446,347 Total ................................................................. 56,960,487 56,960,487 48,401,226

36,989,303 36,989,303 34,334,378 15,293,600 15,293,600 14,883,031

10,000 10,000 5,228 20,776,624 20,776,624 18,717,730

Total ................................................................. 73,069,527 73,069,527 67,940,367

TOTAL DEPARTMENT OF FLEET ANDFACILITY MANAGEMENT .............................. 197,754,825 197,754,825 181,209,795

BOARD OF ELECTION COMMISSIONERS - ELECTION AND ADMINISTRATION DIVISION - 39 -

7,194,282 7,194,282 7,107,093 4,211,739 4,211,739 5,010,028

6,336 6,336 5,735 211,942 211,942 211,674

Total ................................................................. 11,624,299 11,624,299 12,334,530

COMMISSION ON HUMAN RELATIONS - 45 -1,094,682 1,094,682 1,061,686

68,737 68,737 46,121 600 600 217

1,500 1,500 1,346 Total ................................................................. 1,165,519 1,165,519 1,109,370


2140.0100-Contractual Services ......................................2140.0200-Travel .............................................................



2005.0200-Travel .............................................................2005.0100-Contractual Services ......................................

2005.0200-Travel .............................................................





2126.0200-Travel .............................................................

2131.9160-For Expenses Related to Services








BUREAU OF FACILITY MANAGEMENT - 38 -

BUREAU OF ASSET MANAGEMENT - 38 -

BUREAU OF FLEET OPERATIONS - 38 -

Provided by PBC ...........................................................

124




MAYOR'S OFFICE FOR PEOPLEWITH DISABILITIES - 48 -

$ 1,184,353 $ 1,184,353 $ 1,172,458 189,195 189,195 169,493 12,311 12,311 6,816 8,586 8,586 6,092

20,000 20,000 20,000 Total ................................................................. 1,414,445 1,414,445 1,374,859

DEPARTMENT OF FAMILY AND SUPPORTSERVICES - 50 -

4,546,247 4,546,247 7,253,369 624,448 624,448 550,623

3,800 3,800 1,915 28,040 28,040 21,796

1,050,000 1,050,000 1,049,250 6,000,000 6,000,000 5,991,307

15,075,000 15,075,000 14,192,560 2,605,000 2,605,000 2,269,102 1,540,979 1,540,979 1,489,071

16,663,403 16,663,403 16,583,403 17,756,201 17,756,201 17,730,459

900,000 900,000 900,000 850,000 850,000 850,000

6,899,876 6,899,876 6,977,806 1,800,000 1,800,000 1,756,183

92,260 92,260 92,260 Total ................................................................. 76,435,254 76,435,254 77,709,104

DEPARTMENT OF PLANNING AND

9,526,223 9,526,223 9,326,944 3,435,533 3,435,533 3,124,782

7,310 7,310 3,882 20,883 20,883 9,014 10,000 10,000 3,237

80,000 80,000 38,553 339,000 339,000 339,000 75,000 75,000 75,000

175,000 175,000 175,000 522,700 522,700 522,700

Total ................................................................. 14,191,649 14,191,649 13,618,112

and Security....................................................................

2005.9400-Internal Transfers and Reimbursements ........


2005.9260-After School Programs ...................................2005.9259-Summer Programs .........................................

2005.9110-Property Management, Maintenance..............

2005.9211-Single-Family Troubled Building Initiative ......2005.9183-Foreclosure Prevention Program ...................

DEVELOPMENT - 54 -

2005.9400-Internal Transfers and Reimbursements ........

2005.9253-Early Childhood Education Program ..............



2005.0200-Travel .............................................................

2005.9255-Homeless Services for Youth .........................

2005.9262-Earned Income Tax Credit .............................

2005.0200-Travel .............................................................

2005.9204-Youth Mentoring Programs ............................


2005.9261-Children's Advocacy Center ...........................



2005.9254-Violence Reduction Program .........................

2005.9263-Homeless Services ........................................

2005.9143-Workforce Services for Target Populations ...

2005.9290-Homeless Supportive Services ......................

2005.0400-Equipment ......................................................2005.0300-Commodities and Materials ............................

2005.9224-Micro Market Recovery Program ...................2005.9212-Multi-Family Troubled Building Initiative .........

125




POLICE BOARD - 55 -$ 283,272 $ 283,272 $ 239,272

188,882 188,882 163,477 500 500 274 990 990 129

Total ................................................................. 473,644 473,644 403,152

CIVILIAN OFFICE OF POLICE ACCOUNTABILITY - 60 -5,916,810 5,916,810 5,607,035 1,300,432 1,300,432 945,948

15,000 15,000 4,617 84,990 84,990 76,558

Total ................................................................. 7,317,232 7,317,232 6,634,158

LICENSE APPEAL COMMISSION - 77 -76,932 76,932 81,531

101,995 101,995 84,578 500 500 462

Total ................................................................. 179,427 179,427 166,571

BOARD OF ETHICS - 78 -756,420 756,420 758,623 62,272 62,272 46,146 3,905 3,905 2,759 3,210 3,210 1,920

Total ................................................................. 825,807 825,807 809,448

DEPARTMENT OF FINANCE GENERAL - 99 -398,304,395 398,304,395 326,690,800 78,211,247 82,011,247 72,579,530

115,200 115,200 60,677 1,612,000 1,612,000 1,388,040

15,478,572 15,478,572 15,292,975

15,423,400 15,423,400 11,921,014 2005.0934-Claims for Damages and Liabilities Against

200,000 200,000 79,093

7,096,607 7,096,607 5,518,407

897,841 897,841 577,908 Security Tax....................................................................



2005.0931-For the Payment of Tort and Non-Tort

the City when Ordered Paid by the City Council ............




2005.0300-Commodities and Materials ............................2005.0100-Contractual Services ......................................

2005.0000-Personnel Services ........................................2005.0100-Contractual Services ......................................2005.0200-Travel .............................................................





2005.0991-To Provide for Matching and Supplementary Grant Funds Currently in Effect and New Grants ..........

2005.0912-For Payment of Bonds ...................................2005.0400-Equipment ......................................................

Judgments, Outside Counsel Expenses and Expert Costs, as Approved by the Corporation Counsel .........


2005.9027-For the City Contribution to Social

126



GENERAL GOVERNMENT - Concluded

$ - $ 1,800,000 $ 1,800,000 35,305,550 35,305,550 36,549,228

480,000 480,000 435,183 425,000 425,000 398,200

1,000,000 1,000,000 1,000,000 - 2,000,000 2,000,000 - 3,500,000 3,500,000

1,500,000 1,500,000 1,309,074 - 1,300,000 1,300,000 - 2,000,000 2,000,000 - 1,000,000 999,941

123,471,077 123,471,077 122,971,000

2,852,109 2,852,109 2,852,109

1,467,410 1,467,410 1,467,410

18,985,000 18,985,000 18,985,000 92,920,000 92,920,000 92,135,000 12,544,000 12,544,000 12,544,000

Total ................................................................. 808,289,408 823,689,408 736,354,589

TOTAL GENERAL GOVERNMENT ................ 1,305,128,513 1,320,528,513 1,202,086,490

HEALTH

DEPARTMENT OF PUBLIC HEALTH - 41 -16,069,402 16,069,402 16,182,794 15,153,391 15,153,391 14,737,141

10,850 10,850 12,904 726,480 726,480 672,918 30,234 30,234 27,143

Total ................................................................. 31,990,357 31,990,357 31,632,900

TOTAL HEALTH .............................................. 31,990,357 31,990,357 31,632,900

PUBLIC SAFETY

INDEPENDENT POLICE REVIEW AUTHORITY - 56 -2,896,323 2,896,323 2,876,281

Total ................................................................. 2,896,323 2,896,323 2,876,281

Department Salaries ......................................................

Department Benefits ......................................................

2005.9210-Economic Development Initiatives .................

2005.9638-For Corporate Fund Subsidy of Chicago

2005.9176-West Nile Virus Program ................................

2005.9076-City's Contribution to Medicare Tax ...............2005.9030-After School Investments ...............................

2005.9257-Community Policing ........................................


1005.0400-Equipment ......................................................1005.0300-Commodities and Materials ............................

2005.9214-Parks Investments ..........................................

2005.9180-For World Business Chicago Program ...........

2005.9635-To Reimburse Midway Fund for Fire

2005.9292-Vacant Building Rehab Program ....................2005.9291-Legal Protection Fund ....................................

Public Library .................................................................

1005.0200-Travel .............................................................


2005.9293-Cyber-Security Initiatives at City Colleges ......

2005.9636-To Reimburse Midway Fund for Fire

2005.9121-Lobbyist on Behalf of the City of Chicago ......

2005.9377-For Transfers to Debt Service ........................

2005.9980-Municipal Fund Pension Allocation ................2005.9981-Laborers' Fund Pension Allocation .................

127



PUBLIC SAFETY - Continued

CHICAGO POLICE DEPARTMENT - 57 -$ 1,363,775,959 $ 1,363,775,959 $ 1,402,559,764

24,128,452 24,728,452 21,247,387 305,570 305,570 158,479

5,914,450 5,914,450 5,282,786 36,250 36,250 35,600

19,844,350 19,844,350 38,277,466

19,000,000 19,000,000 17,421,194 1,736,069 1,736,069 1,732,319

Total ................................................................. 1,434,741,100 1,435,341,100 1,486,714,995

OFFICE OF EMERGENCY MANAGEMENT AND

84,840,005 84,840,005 83,773,959 16,093,112 16,093,112 15,850,667

81,717 81,717 81,986 1,303,127 1,303,127 1,217,543

87,727 87,727 91,127 Total ................................................................. 102,405,688 102,405,688 101,015,282

CHICAGO FIRE DEPARTMENT - 59 - 562,284,906 562,284,906 561,206,283

6,180,239 6,180,239 3,888,353 50,900 50,900 20,713

2,766,514 2,766,514 2,581,386

CHICAGO FIRE DEPARTMENT - 59 - Concluded164,000 164,000 153,058

2,702,000 2,702,000 2,701,938

9,000,000 9,000,000 4,954,603 1,080,000 1,080,000 214,176

Total ................................................................. 584,228,559 584,228,559 575,720,510



2705.0400-Equipment ......................................................

Are Not Covered Under Workers' Compensation Act ...

2005.0937-For Cost and Administration of Hospital and Medical Expenses for Employees Injured on Duty Who



Judgments, Outside Counsel Expenses and Expert Costs, as Approved by the Corporation Counsel ..........



2005.0931-For the Payment of Tort and Non-Tort 2005.0400-Equipment ......................................................

2005.0200-Travel .............................................................

1005.0931-For the Payment of Tort and Non-Tort Judgments, Outside Counsel Expenses and Expert

1005.0937-For Cost and Administration of Hospital and Medical Expenses for Employees Injured on Duty Who


1005.0200-Travel .............................................................


Costs, as Approved by the Corporation Counsel ..........

Are Not Covered Under Workers' Compensation Act ...



COMMUNICATIONS - 58 -

1005.0400-Equipment ......................................................


128



PUBLIC SAFETY - Concluded

DEPARTMENT OF BUILDINGS - 67 -$ 19,723,099 $ 19,723,099 $ 18,840,658

2,784,013 2,784,013 2,505,970 155,000 155,000 143,277 41,620 41,620 35,930

300,000 300,000 70,500

100,000 100,000 21,825

3,000,000 3,000,000 2,413,268 Total ................................................................. 26,103,732 26,103,732 24,031,428

DEPARTMENT OF BUSINESS AFFAIRS ANDCONSUMER PROTECTION - 70 -

13,666,267 13,666,267 12,073,414 4,517,757 4,917,757 4,094,767

37,343 37,343 13,399 140,234 140,234 118,229

Total ................................................................. 18,361,601 18,761,601 16,299,809

COMMISSION ON ANIMAL CARE AND CONTROL - 73 -4,635,433 4,635,433 5,005,493 1,120,744 1,120,744 584,086

480 480 254 584,079 584,079 547,996

Total ................................................................. 6,340,736 6,340,736 6,137,829

TOTAL PUBLIC SAFETY ................................ 2,175,077,739 2,176,077,739 2,212,796,134

STREETS AND SANITATION

COMMISSIONER'S OFFICE - 81 -1,640,506 1,640,506 1,397,724

433,693 433,693 418,965 200 200 -

6,150 6,150 5,778

540,000 540,000 346,609 Total ................................................................. 2,620,549 2,620,549 2,169,076


Judgments, Outside Counsel Expenses and Expert Costs, as Approved by the Corporation Counsel ..........

2005.0931-For the Payment of Tort and Non-Tort

2005.0931-For the Payment of Tort and Non-Tort Judgments, Outside Counsel Expenses and Expert Costs, as Approved by the Corporation Counsel ..........





2005.0200-Travel .............................................................

and Payroll Checks and for Refunding Duplicate


2005.0200-Travel .............................................................2005.0100-Contractual Services ......................................

2005.0200-Travel .............................................................

2005.9019-For Board Up and Demolition of


2005.0989-For Refunds for Cancelled Voucher Warrants



Abandoned Buildings .....................................................

Payments and Payments Made in Error ........................


129



STREETS AND SANITATION - Concluded

COMMISSIONER'S OFFICE -ADMINISTRATIVE SERVICES DIVISION - 81 -

$ 1,771,308 $ 1,771,308 $ 1,775,287 35,008 35,008 28,651

250 250 - 5,250 5,250 4,925

Total ................................................................. 1,811,816 1,811,816 1,808,863

BUREAU OF SANITATION - 81 -99,133,803 99,133,803 93,849,957 51,413,643 51,413,643 51,406,725

160,016 160,016 148,718 33,102 33,102 33,042

Total ................................................................. 150,740,564 150,740,564 145,438,442

BUREAU OF RODENT CONTROL - 81 -8,657,255 8,657,255 7,815,047 1,476,806 1,476,806 1,474,447

92,962 92,962 89,858 8,722 8,722 8,189

Total ................................................................. 10,235,745 10,235,745 9,387,541

BUREAU OF STREET OPERATIONS - 81 -19,458,131 19,458,131 17,700,615 2,796,920 2,796,920 2,665,104

440,125 440,125 370,231 Total ................................................................. 22,695,176 22,695,176 20,735,950

BUREAU OF FORESTRY - 81 -16,256,114 16,256,114 15,590,540 2,553,656 2,553,656 2,531,989

4,700 4,700 3,645 95,645 95,645 77,439 11,575 11,575 975

Total ................................................................. 18,921,690 18,921,690 18,204,588

TOTAL STREETS AND SANITATION ............ 207,025,540 207,025,540 197,744,460

2006.0200-Travel .............................................................



2020.0400-Equipment ......................................................



2060.0400-Equipment ......................................................









2025.0300-Commodities and Materials ............................2025.0400-Equipment ......................................................


130



TRANSPORTATION

COMMISSIONER'S OFFICE - 84 -$ 2,363,946 $ 2,363,946 $ 2,075,836

101,754 101,754 93,680 3,000 3,000 2,203 7,100 7,100 6,416

1,300,000 1,300,000 1,107,967 Total ................................................................. 3,775,800 3,775,800 3,286,102

DIVISION OF ADMINISTRATION - 84 - 5,263,687 5,263,687 4,984,825

197,326 197,326 166,147 1,300 1,300 -

11,600 11,600 10,860 Total ................................................................. 5,473,913 5,473,913 5,161,832

DIVISION OF TRAFFIC SAFETY - 84 -834,209 834,209 753,559

14,611,410 14,611,410 14,256,325 5,600 5,600 1,897 5,100 5,100 1,941

Total ................................................................. 15,456,319 15,456,319 15,013,722

DIVISION OF SIGN MANAGEMENT- 84 -3,310,842 3,310,842 2,928,468

436,157 436,157 432,957 508,983 508,983 475,449

7,800 7,800 6,832 Total ................................................................. 4,263,782 4,263,782 3,843,706

DIVISION OF PROJECT DEVELOPMENT - 84 -3,239,535 3,239,535 2,993,285

785,489 785,489 776,831 6,000 6,000 1,387

31,900 31,900 25,405 250,000 250,000 250,000

Total ................................................................. 4,312,924 4,312,924 4,046,908


2105.0931-For the Payment of Tort and Non-Tort 2105.0300-Commodities and Materials ............................

Judgments, Outside Counsel Expenses and Expert


2145.9142-Ex-Offender/Re-Entry Initiatives .....................

2140.0000-Personnel Services ........................................2140.0100-Contractual Services ......................................2140.0300-Commodities and Materials ............................





2105.0200-Travel .............................................................


Costs, as Approved by the Corporation Counsel .........


2115.0200-Travel .............................................................

2140.0400-Equipment ......................................................

2130.0200-Travel .............................................................

131

Schedule A-2 ConcludedCITY OF CHICAGO, ILLINOISGENERAL FUNDSCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017

TRANSPORTATION - Concluded

DIVISION OF ELECTRICAL OPERATIONS - 84 -$ 8,261,458 $ 8,261,458 $ 7,109,798

441,790 441,790 394,317 16,000 16,000 8,791

562,625 562,625 525,065 21,000 21,000 20,644

Total ................................................................. 9,302,873 9,302,873 8,058,615

DIVISION OF IN-HOUSE CONSTRUCTION - 84 -12,929,072 12,929,072 11,044,401

262,752 262,752 244,145 1,600 1,600 -

305,161 305,161 269,096 15,325 15,325 13,224

Total ................................................................. 13,513,910 13,513,910 11,570,866

TOTAL TRANSPORTATION .......................... 56,099,521 56,099,521 50,981,751

PRINCIPAL RETIREMENT

2,145,000 2,145,000 2,144,947

TOTAL PRINCIPAL RETIREMENT ................ 2,145,000 2,145,000 2,144,947

INTEREST AND OTHER FISCAL CHARGES

2,737,330 2,737,330 3,080,060

TOTAL INTEREST AND OTHER FISCAL CHARGES ....................................... 2,737,330 2,737,330 3,080,060

TOTAL GENERAL FUND ................................ $ 3,780,204,000 $ 3,796,604,000 $ 3,700,466,742


2005.9540-Interest on General Obligation Certificate ......

2155.0000-Personnel Services ........................................2155.0100-Contractual Services ......................................2155.0200-Travel .............................................................2155.0300-Commodities and Materials ............................2155.0400-Equipment ......................................................

2150.0300-Commodities and Materials ............................2150.0400-Equipment ......................................................

2150.0100-Contractual Services ......................................2150.0200-Travel .............................................................

Certificate ......................................................................2005.9540 - Payment of General Obligation

Original FinalBudget Budget Actual

132


133

SPECIAL REVENUE FUNDS -

FEDERAL, STATE AND LOCAL

GRANTS

134

Schedule B-1CITY OF CHICAGO, ILLINOISSPECIAL REVENUE FUNDS - FEDERAL, STATE AND LOCAL GRANTSCOMBINING BALANCE SHEETDecember 31, 2017With Comparative Totals for December 31, 2016(Amounts are in Thousands of Dollars)

ASSETS:$ 5,873 $ 8,921 $ 5,545 $ 12,858

1,335 62 1,162 53 13,452 514 262 38

73 34,310 43,541 201,461 - - - - - - - -

Total Assets ..................................................................... $ 20,733 $ 43,807 $ 50,510 $ 214,410


$ 375 $ 18,565 $ 9,502 $ 49,513 27,568 24,311 36,239 139,184

322 211 176 546 8,184 7,443 5,993 29,265

Total Liabilities ................................................................. $ 36,449 $ 50,530 $ 51,910 $ 218,508

Deferred Inflows:74 10,529 32,301 169,675

Fund Balance (Deficit):- - - -

(15,790) (17,252) (33,701) (173,773)

Total Fund Balance (Deficit) ............................................ (15,790) (17,252) (33,701) (173,773)

Total Liabilities, Deferred Inflows and Fund Balance ...... $ 20,733 $ 43,807 $ 50,510 $ 214,410

Unassigned ..........................................................................

Other Assets ..............................................................................

Voucher Warrants Payable ..................................................Due to Other Funds ..............................................................Accrued and Other Liabilities ...............................................Unearned Revenue ..............................................................

Deferred Inflows ...................................................................

Restricted .............................................................................

Due from Other Funds ...............................................................Due from Other Governments ...................................................

Investments ...............................................................................Receivables (Net of Allowances) ...............................................

Government Health Safety portation

Restricted Assets - Cash and Cash Equivalents .......................

General Public Trans-

135

$ 49 $ 4,124 $ 4,077 $ 46,915 $ 2,212 $ 1,310 $ - $ 91,884 $ 108,351 - - 11 1,559 93 - - 4,275 4,630 30 1,582 1,376 5,220 - - - 22,474 25,908

- 327 4,973 100,910 - 8,372 - 393,967 425,126 - - - 3,215 3 - - 3,218 3,218 - - - 2,964 303 - - 3,267 4,075

$ 79 $ 6,033 $ 10,437 $ 160,783 $ 2,611 $ 9,682 $ - $ 519,085 $ 571,308

$ 2 $ 28 $ 401 $ 75,249 $ 81 $ 6,542 $ - $ 160,258 $ 169,952 - 5 1,976 21,338 536 1,988 - 253,145 281,017

4 - 32 4,736 72 - - 6,099 12,203 - 7 4,615 40,356 550 1,422 - 97,835 97,990

$ 6 $ 40 $ 7,024 $ 141,679 $ 1,239 $ 9,952 $ - $ 517,337 $ 561,162

- - 4,352 22,971 - 3,248 - 243,150 253,053

73 5,993 - - 1,372 - - 7,438 11,054 - - (939) (3,867) - (3,518) - (248,840) (253,961)

73 5,993 (939) (3,867) 1,372 (3,518) - (241,402) (242,907)

$ 79 $ 6,033 $ 10,437 $ 160,783 $ 2,611 $ 9,682 $ - $ 519,085 $ 571,308

Recreational Services ment 2017 2016Aviation Control Outlay Elimination

TotalsEnvironmental and Human Develop- Capital Activity

IntrafundCultural Urban

136

Schedule B-2CITY OF CHICAGO, ILLINOISSPECIAL REVENUE FUNDS - FEDERAL, STATE AND LOCAL GRANTSCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEYear Ended December 31, 2017With Comparative Totals for 2016(Amounts are in Thousands of Dollars)

Revenues:$ 247 $ 89,429 $ 45,276 $ 163,844

247 89,429 45,276 163,844

Expenditures:(341) 93,051 54,657 163,269

(341) 93,051 54,657 163,269

588 (3,622) (9,381) 575

Other Financing Sources (Uses):- - - 19,977 - - - - - - - 19,977

Revenues and Other Financing SourcesOver (Under) Expenditures andOther Financing Sources (Uses) ............. 588 (3,622) (9,381) 20,552

(16,378) (13,630) (24,320) (194,325)

$ (15,790) $ (17,252) $ (33,701) $ (173,773)

Fund Balance (Deficit) - Beginning of Year ...........

Fund Balance (Deficit) - End of Year ....................

Total Revenues .............................................

Current .............................................................

Total Expenditures ........................................

Revenues Over (Under) Expenditures .........

Operating Transfers Out ..................................Total Other Financing Sources (Uses) .........

Proceeds of Debt, net ......................................

General Public Trans-

Federal/State Grants ........................................

Government Health Safety portation

137

$ 1 $ 478 $ 10,905 $ 346,286 $ 68 $ 46,717 $ 703,251 $ 743,734

1 478 10,905 346,286 68 46,717 703,251 743,734

- 347 15,660 346,906 - 48,174 721,723 797,245

- 347 15,660 346,906 - 48,174 721,723 797,245

1 131 (4,755) (620) 68 (1,457) (18,472) (53,511)

- - - - - - 19,977 30,746 - - - - - - - (4,000) - - - - - - 19,977 26,746

1 131 (4,755) (620) 68 (1,457) 1,505 (26,765)

72 5,862 3,816 (3,247) 1,304 (2,061) (242,907) (216,142)

$ 73 $ 5,993 $ (939) $ (3,867) $ 1,372 $ (3,518) $ (241,402) $ (242,907)

Services Development Outlay 2017Human Urban Capital Totals

2016Control RecreationalEnvironmental Cultural and

Aviation

138

NONMAJOR GOVERNMENTAL FUNDS

139

Schedule C-1CITY OF CHICAGO, ILLINOISNONMAJOR GOVERNMENTAL FUNDSCOMBINING BALANCE SHEETDecember 31, 2017(Amounts are in Thousands of Dollars)

ASSETS$ 12,391 $ 3,998 $ 9,318 $ 25,707

28,640 5,393 56,565 90,598 Receivables (Net of Allowances):

- 22,950 - 22,950 178,383 61 308 178,752 99,905 - 703 100,608 18,591 - 18,040 36,631 36,498 - - 36,498

115 63,209 - 63,324 Total Assets .................................................................. $ 374,523 $ 95,611 $ 84,934 $ 555,068


$ 193,983 $ - $ 5,899 $ 199,882 - 795 - 795

43,678 - 18,743 62,421 6,567 122 241 6,930

Total Liabilities .............................................................. 244,228 917 24,883 270,028

4,796 19,706 - 24,502

Fund Balance:3,057 74,988 98,714 176,759

122,202 - - 122,202 240 - (38,663) (38,423)

Total Fund Balance ...................................................... 125,499 74,988 60,051 260,538 Total Liabilities, Deferred Inflows and Fund Balance ... $ 374,523 $ 95,611 $ 84,934 $ 555,068

Total

Restricted ........................................................................... Committed .........................................................................

Nonmajor

Accounts ............................................................................Due from Other Funds ............................................................

Restricted Cash and Cash Equivalents ..................................

Voucher Warrants Payable ................................................

Unassigned .........................................................................

Accrued Interest ................................................................. Due to Other Funds ............................................................ Accrued and Other Liabilities ..............................................

Property Tax ......................................................................

Revenue

Deferred Inflows .....................................................................

Funds

Investments ............................................................................

Due from Other Governments ................................................

Restricted Cash and Investments with Escrow Agent ............

TotalNonmajor

GovernmentalFundsFunds

Project Capital

Total DebtService

FundSpecial

Cash and Cash Equivalents ...................................................

Nonmajor

Taxing Areas

Special

140

Schedule C-2CITY OF CHICAGO, ILLINOISNONMAJOR GOVERNMENTAL FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

REVENUES$ 143,103 $ - $ - $ 143,103

65,013 - - 65,013 188,085 - - 188,085 86,047 - - 86,047 63,747 - - 63,747

- 21,219 - 21,219 24,751 - - 24,751 33,664 - - 33,664 18,929 - - 18,929 1,242 1,559 377 3,178

51,001 - - 51,001 20,923 924 970 22,817

Total Revenues ......................................... 696,505 23,702 1,347 721,554

EXPENDITURESCurrent:

General Government ...................................... 340,437 - - 340,437 Public Safety .................................................. 4,743 - - 4,743 Streets and Sanitation .................................... 44,734 - - 44,734 Transportation ................................................ 104,850 - - 104,850 Cultural and Recreational ............................... 87,414 - - 87,414 Other .............................................................. 394 - - 394

- - 62,591 62,591 Debt Service:

Principal Retirement ....................................... - 60,825 - 60,825 Interest and Other Fiscal Charges ................. 2,147 16,161 - 18,308 Total Expenditures .................................... 584,719 76,986 62,591 724,296

Revenues Over (Under) Expenditures ...... 111,786 (53,284) (61,244) (2,742)

Continued on following page.

Charges for Services .........................................Miscellaneous ....................................................

Capital Outlay ....................................................

Total Total

FundsFunds

TotalNonmajor

Investment Income ............................................

Transportation Tax ............................................

Special Area Tax ...............................................Transaction Tax ................................................

Other Taxes .......................................................Internal Service .................................................Fines ..................................................................

State Sales Tax .................................................

Utility Tax ...........................................................

Funds

Sales Tax (Local) ..............................................

NonmajorSpecial Revenue Governmental

NonmajorCapital Project

Debt

AreasTaxingSpecialFund

Service

141

Schedule C-2 - ConcludedCITY OF CHICAGO, ILLINOISNONMAJOR GOVERNMENTAL FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

OTHER FINANCING SOURCES (USES)$ - $ - $ 135,166 $ 135,166

96,875 49,027 - 145,902 (155,747) (14,898) - (170,645)

Total Other Financing Sources (Uses) ........... (58,872) 34,129 135,166 110,423

52,914 (19,155) 73,922 107,681 72,585 94,143 (13,871) 152,857

$ 125,499 $ 74,988 $ 60,051 $ 260,538

DebtTotal Service Total

Nonmajor Fund Nonmajor TotalSpecial Special Capital NonmajorRevenue Taxing Project Governmental

Funds Areas Funds Funds

Issuance of Debt ...............................................Transfers In .......................................................Transfers Out ....................................................

Net Change in Fund Balances ..........................Fund Balance - Beginning of Year ....................Fund Balance - End of Year ..............................

142


143

NONMAJOR SPECIAL REVENUE FUNDS

Vehicle Tax Fund - Expenditures made in accordance with the policy established by the City Council in connection with street repairs and maintenance, as provided by sale of vehicle licenses. Motor Fuel Tax and Project Fund - Expenditures for repair and maintenance of streets and pavements as provided by the City’s distributive share of State Motor Fuel Tax and Motor Fuel Tax Revenue Bonds.

Public Building Commission Fund - For rentals of space and long-term lease obligations by the City as provided by tax levy. Miscellaneous Fund - Expenditures for environmental management purposes related to liquid waste, inspection, operation of emergency communication system and other obligations, as provided by revenues from fees collected for disposal of liquid waste, by surcharges on telephone billings and transfers in. Chicago Public Library Fund - Expenditures for acquisition, repairs, construction and equipment of library buildings; also library maintenance and operations as provided by proceeds of debt, fines and miscellaneous revenues. Special Events, Tourism and Festivals Fund - Expenditures for promoting tourism, conventions and other special events projects in Chicago as provided by the State from Municipal Hotel-Motel Tax receipts and by proceeds from Jazz, Blues and Gospel Festivals and Taste of Chicago. Health and Welfare Fund - For general assistance to be expended and administered by the Illinois Department of Public Aid as provided by patient fees, City and State grants and proceeds of debt, and for neighborhood human infrastructure projects designed to improve the quality of life for citizens. Municipal Employees’ Annuity Benefit Fund (MEABF) Reserve - A tax assessed to meet the City’s funding obligations to the Municipal Employees’ Annuity and Benefit Fund of Chicago. Sales Tax Securitization Corporation - General Fund - The STSC was organized for the limited purpose of purchasing certain sales tax revenues from the City and issuing bonds, notes, or other obligations for the benefit of the City.

144

Schedule D-1CITY OF CHICAGO, ILLINOISNONMAJOR SPECIAL REVENUE FUNDSCOMBINING BALANCE SHEETDecember 31, 2017(Amounts are in Thousands of Dollars)

ASSETS$ - $ 11,823 $ -

15,970 - - Receivables (Net of Allowances):

3,628 1,504 - 56,889 2,654 -

- 9,094 3,226 - - - - 115 -

$ 76,487 $ 25,190 $ 3,226


$ 12,055 $ 7,269 $ - 20,472 421 30 4,534 267 -

37,061 7,957 30

- - -

Fund Balance (Deficit):- - -

39,426 17,233 3,196 - - -

39,426 17,233 3,196

$ 76,487 $ 25,190 $ 3,226

Voucher Warrants Payable ......................................................Due to Other Funds ..................................................................Accrued and Other Liabilities ....................................................

Total Liabilities .......................................................................

Accounts ................................................................................

Restricted .................................................................................

Motor

Due from Other Funds ..................................................................

Fuel TaxBuildingPublic

Projectand

Commission

Total Fund Balance (Deficit) ..................................................

VehicleTax

Unassigned ...............................................................................

Restricted Cash and Investments with Escrow Agent .................

Due from Other Governments ......................................................

Cash and Cash Equivalents ........................................................Investments ..................................................................................

Total Liabilities and Fund Balance .........................................

Committed ................................................................................

Deferred Inflows ...........................................................................

Restricted Cash and Cash Equivalents ........................................

Total Assets ...........................................................................

145

MEABFPensionReserve

$ - $ 216 $ - $ 352 $ - $ - $ 12,391 8,910 - 2,389 1,371 - - 28,640

9,923 110 686 239 11,233 151,060 178,383 20,044 17,717 2,331 270 - - 99,905

- - 6,271 - - - 18,591 - - - - 36,498 - 36,498 - - - - - - 115

$ 38,877 $ 18,043 $ 11,677 $ 2,232 $ 47,731 $ 151,060 $ 374,523

$ 12,971 $ 7,226 $ 3,642 $ - $ - $ 150,820 $ 193,983 18,960 53 3,742 - - - 43,678

148 1,260 358 - - - 6,567 32,079 8,539 7,742 - - 150,820 244,228

- - - - 4,796 - 4,796

3,057 - - - - - 3,057 3,741 9,504 3,935 2,232 42,935 - 122,202

- - - - - 240 240 6,798 9,504 3,935 2,232 42,935 240 125,499

$ 38,877 $ 18,043 $ 11,677 $ 2,232 $ 47,731 $ 151,060 $ 374,523

STSCGeneral

FundMiscellaneous Library

Chicago

SpecialEvents,Tourism

RevenuePublic andSpecial

NonmajorTotal

andHealth

Festivals Welfare Funds

146

Schedule D-2CITY OF CHICAGO, ILLINOISNONMAJOR SPECIAL REVENUE FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT)Year Ended December 31, 2017(Amounts are in Thousands of Dollars)

Revenues:$ - $ - $ -

- - - 131,178 55,530 -

- - - - - - - - -

33,664 - - 17,143 - -

395 125 - 33,494 - -

80 - 442 Total Revenues .............................................................. 215,954 55,655 442


92,820 18,787 335 - - -

509 - - 37,832 6,902 - 75,656 29,194 -

- - - - - -

Debt Service:- - - - - -

Total Expenditures ......................................................... 206,817 54,883 335

Revenues Over (Under) Expenditures ........................... 9,137 772 107

Other Financing Sources (Uses):687 - - (10) - -

Total Other Financing Sources (Uses) ........................... 677 - -

Net Change in Fund Balances ........................................ 9,814 772 107 29,612 16,461 3,089

$ 39,426 $ 17,233 $ 3,196

Transfers Out ........................................................................

Public Safety ..........................................................................Streets and Sanitation ...........................................................Transportation .......................................................................

Investment Income ................................................................

Fund Balance (Deficit) - Beginning of Year ..................................

Principal Retirement ..............................................................

Cultural and Recreational ......................................................Other ......................................................................................

Fund Balance (Deficit) - End of Year ............................................

Interest and Other Fiscal Charges ........................................

Transfers In ...........................................................................

Charges for Services .............................................................

State Sales Tax .....................................................................

Miscellaneous ........................................................................

General Government .............................................................Health ....................................................................................

Other Taxes ...........................................................................Internal Service ......................................................................Fines ......................................................................................

Sales Tax (Local) ...................................................................Transportation Tax ................................................................

Transaction Tax .....................................................................

Utility Tax ...............................................................................

CommissionBuilding

Fuel TaxMotor

PublicVehicle

Tax Projectand

147

MEABFPensionReserve

$ 100,260 $ - $ - $ - $ 42,843 $ - $ 143,103 - - - - - 65,013 65,013 - - 1,377 - - - 188,085 - - - - - 86,047 86,047

63,747 - - - - - 63,747 - - 24,751 - - - 24,751 - - - - - - 33,664 - 1,786 - - - - 18,929

557 8 35 30 92 - 1,242 4,624 24 12,859 - - - 51,001

13,016 165 6,600 620 - - 20,923 182,204 1,983 45,622 650 42,935 151,060 696,505

179,030 36,389 12,267 799 - 10 340,437 - - - - - - -

4,021 - 213 - - - 4,743 - - - - - - 44,734 - - - - - - 104,850 - 56,437 30,977 - - - 87,414 - - 394 - - - 394

- - - - - - - - 2,147 - - - - 2,147

183,051 94,973 43,851 799 - 10 584,719

(847) (92,990) 1,771 (149) 42,935 151,050 111,786

- 96,188 - - - - 96,875 - (3,109) (1,818) - - (150,810) (155,747) - 93,079 (1,818) - - (150,810) (58,872)

(847) 89 (47) (149) 42,935 240 52,914 7,645 9,415 3,982 2,381 - - 72,585

$ 6,798 $ 9,504 $ 3,935 $ 2,232 $ 42,935 $ 240 $ 125,499

Fund

Events,STSC

GeneralTourism

and

NonmajorTotalSpecial

FundsRevenueSpecial

Festivals Welfareand

Health

Miscellaneous LibraryPublic

Chicago

148

Schedule D-3CITY OF CHICAGO, ILLINOISNONMAJOR SPECIAL REVENUE FUNDSCOMBINING SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017(Amounts are in Thousands of Dollars)

FUNDFinal Budgeted Revenues:

$ - $ - $ 127,723 $ 10,000 - - 58,039 -

66,440 94,661 - - - - - - - - - 24,679 - - - - - 56,000 - -

Total Final Budgeted Revenues ........................ 66,440 150,661 185,762 34,679

Actual Revenues:- - 131,178 - - - 55,530 - - - - -

63,747 100,260 - - - - - - - - 1,377 24,751 - - - - - 42,843 - -

Total Actual Revenues ...................................... 63,747 143,103 188,085 24,751

$ (2,693) $ (7,558) $ 2,323 $ (9,928)

Motor Fuel Tax and Project .....................................Public Building Commission ....................................

Variance Positive (Negative) .......................................

Miscellaneous ..........................................................Chicago Public Library .............................................Special Events, Tourism and Festivals ....................Health and Welfare ..................................................MEABF Pension Reserve ........................................

Chicago Public Library .............................................Special Events, Tourism and Festivals ....................Health and Welfare ..................................................

Vehicle Tax ..............................................................

Motor Fuel Tax and Project .....................................Miscellaneous ..........................................................

MEABF Pension Reserve ........................................

Vehicle Tax ..............................................................

TaxesState

Trans-portation

Tax

andUtilityTaxesTax

Property

SpecialAreaTransaction

and

149

$ 32,797 $ 8,800 $ - $ 11,487 $ 1,000 $ - $ 30,625 $ 222,432 - - - - - - 4,232 62,271 - - - - 31,147 - 771 193,019 - 1,520 2 165 600 77,203 22,961 102,451 - - - 12,400 6,500 - 3,436 47,015 - - - - 800 - 74 874 - - - - - - - 56,000

32,797 10,320 2 24,052 40,047 77,203 62,099 684,062

33,664 17,143 395 33,494 80 - 687 216,641 - - 125 - - - - 55,655 - - - - 442 - - 442 - - 557 4,624 13,016 - - 182,204 - 1,786 8 24 165 - 96,188 98,171 - - 35 12,859 6,600 - - 45,622 - - 30 - 620 - - 650 - - 92 - - - - 42,935

33,664 18,929 1,242 51,001 20,923 - 96,875 642,320

$ 867 $ 8,609 $ 1,240 $ 26,949 $ (19,124) $ (77,203) $ 34,776 $ (41,742)

SpecialNonmajor

Total

Transfers In/Other Funds

Revenue

BudgetedPrior Years'Surplus andOperating

laneousMiscel-

of DebtProceeds

Fines IncomeInvestment

Leases,Rentals,

Sales andCharges for

ServicesInternalService

150

Schedule D-4CITY OF CHICAGO, ILLINOISNONMAJOR SPECIAL REVENUE FUNDSCOMBINING SCHEDULE OF EXPENDITURES AND ENCUMBRANCES -BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017(Amounts are in Thousands of Dollars)

FUNDFinal Budget:

$ 106,416 $ - $ - $ 37,204 15,593 - - 12,721

188,367 - 5,936 - 45,797 - - - 14,643 - - -

800 - - - Total Original and Final Budget .......................... 371,616 - 5,936 49,925

Actual Expenditures and Encumbrances:93,719 - - 37,212 14,602 - - 6,859

179,629 - 3,409 - 38,967 - - - 13,715 - - -

800 - - - Total Actual Expenditures and Encumbrances ... 341,432 - 3,409 44,071

$ 30,184 $ - $ 2,527 $ 5,854

Vehicle Tax ...............................................................Motor Fuel Tax and Project ......................................

Variance Positive (Negative) .......................................

Miscellaneous ...........................................................Library ......................................................................Special Events, Tourism and Festivals ....................Health and Welfare ..................................................

Miscellaneous ...........................................................Library ......................................................................

Health and Welfare ..................................................

Vehicle Tax ...............................................................Motor Fuel Tax and Project ......................................

Special Events, Tourism and Festivals ....................

Government Health

StreetsGeneral and

SanitationSafetyPublic

151

$ 78,812 $ - $ - $ - $ - $ 222,432 33,957 - - - - 62,271

- - - - - 194,303 - 56,654 - - - 102,451 - 31,293 - - - 45,936 - - - - - 800

112,769 87,947 - - - 628,193

75,204 - - - - 206,135 31,212 - - - - 52,673

- - - - - 183,038 - 56,212 - - - 95,179 - 30,544 - - - 44,259 - - - - - 800

106,416 86,756 - - - 582,084

$ 6,353 $ 1,191 $ - $ - $ - $ 46,109

FundsOut ChargesRecreational Pensions

CulturalEmployee

Total

RevenueSpecial

NonmajorInterestand Other

FiscalandOperatingTransfersTrans-

portation

152

Schedule D-5CITY OF CHICAGO, ILLINOISSPECIAL REVENUE FUNDSSCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017

VEHICLE TAX FUND

GENERAL GOVERNMENT

CITY COUNCIL COMMITTEES - 15 -

COMMITTEE ON TRANSPORTATION AND PUBLIC WAY$ 437,750 $ 437,750 $ 479,105

16,387 16,387 16,046 Total ..................................................................................................... 454,137 454,137 495,151

COMMITTEE ON PEDESTRIAN AND TRAFFIC SAFETY244,379 244,379 242,800

5,000 5,000 - Total ..................................................................................................... 249,379 249,379 242,800

703,516 703,516 737,951

CITY CLERK - 25 -4,190,647 4,190,647 3,599,630 2,215,387 2,215,387 1,281,075

23,940 23,940 8,397 422,570 422,570 226,713

20,000 20,000 16,301 Total ..................................................................................................... 6,872,544 6,872,544 5,132,116

DEPARTMENT OF FINANCE - 27 -FINANCIAL STRATEGY AND OPERATIONS

427,552 427,552 360,487 Total ..................................................................................................... 427,552 427,552 360,487

REVENUE SERVICES AND OPERATIONS 473,085 473,085 450,556

4,500 4,500 - 500 500 -

1,177,575 1,177,575 1,170,714 Total ..................................................................................................... 1,655,660 1,655,660 1,621,270

2,083,212 2,083,212 1,981,757

DEPARTMENT OF LAW - 31 -1,334,205 1,334,205 1,248,237

86,960 86,960 82,131 3,228 3,228 1,226 5,170 5,170 4,856

700 700 700 Total ..................................................................................................... 1,430,263 1,430,263 1,337,150

2005.0100-Contractual Services .................................................................

TOTAL CITY COUNCIL COMMITTEES ......................................................

ActualFinal

BudgetOriginalBudget

2230.0000-Personnel Services ...................................................................2230.9000-Purposes as Specified ...............................................................

2265.0000-Personnel Services ...................................................................


2265.0300-Commodities and Materials .......................................................

2005.9400-Internal Transfers and Reimbursements ...................................

2020.0400-Equipment .................................................................................



2005.0200-Travel ........................................................................................2005.0300-Commodities and Materials .......................................................


2005.0300-Commodities and Materials .......................................................2005.0200-Travel ........................................................................................2005.0100-Contractual Services .................................................................

2020.0100-Contractual Services .................................................................

2005.9400-Internal Transfers and Reimbursements ...................................

TOTAL DEPARTMENT OF FINANCE .........................................................

2020.0300-Commodities and Materials .......................................................

153

Schedule D-5 - ContinuedCITY OF CHICAGO, ILLINOISSPECIAL REVENUE FUNDSSCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017

VEHICLE TAX FUND - Continued


DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -

BUREAU OF FACILITY MANAGEMENT$ 900,625 $ 900,625 $ 1,087,979

38,426 38,426 37,771 Total ....................................................................................................... 939,051 939,051 1,125,750

BUREAU OF ASSET MANAGEMENT4,607,138 4,607,138 3,434,328 8,873,752 8,873,752 7,928,888

Total ....................................................................................................... 13,480,890 13,480,890 11,363,216

BUREAU OF FLEET OPERATIONS3,434,944 3,434,944 3,372,494

Total ....................................................................................................... 3,434,944 3,434,944 3,372,494

TOTAL DEPARTMENT OF FLEET AND FACILITY MANAGEMENT..... 17,854,885 17,854,885 15,861,460

DEPARTMENT OF BUILDINGS - 67 -477,747 477,747 475,452

31,000 31,000 2,148 3,008 3,008 2,820

Total ....................................................................................................... 511,755 511,755 480,420

DEPARTMENT OF FINANCE - GENERAL - 99 -28,053,486 28,053,486 24,146,607 10,703,956 10,703,956 8,416,128

11,800 11,800 5,720 375,000 375,000 79,761

765,000 765,000 663,605

707,700 707,700 656,750

2131.0300-Commodities and Materials ........................................................

2005.0000-Personnel Services .....................................................................



2005.0100-Contractual Services ...................................................................

2005.0989-Refunds for Cancelled Voucher Warrants and Payroll 2005.0934-Claims for Damages and Liability..................................................


2005.0991-To Provide for Matching and Supplementary Grant Funds Currently in Effect as well as New Grants..................................................

2005.0100-Contractual Services ...................................................................2005.0931-Tort and Non-Tort Judgments, Outside Counsel Expenses

Checks and Duplicate Payments and Payments Made in Error................

and Expert Costs......................................................................................

Budget Budget ActualOriginal Final

2126.0300-Commodities and Materials ........................................................2126.0100-Contractual Services ...................................................................


154




DEPARTMENT OF FINANCE - GENERAL - 99 - Continued

$ 22,477 $ 22,477 $ 22,477 951,419 951,419 951,419

2,122,634 2,122,634 - 17,772,176 17,772,176 17,772,176

15,464,000 15,464,000 15,464,000

10,000 10,000 10,000 Total ....................................................................................................... 76,959,648 76,959,648 68,188,643

106,415,823 106,415,823 93,719,497

STREETS AND SANITATION

BUREAU OF SANITATION - 81 - 5,124,687 5,124,687 5,993,300 2,057,511 2,057,511 2,055,699

500 500 - Total ....................................................................................................... 7,182,698 7,182,698 8,048,999

BUREAU OF STREET OPERATIONS - 81 - 3,993,051 3,993,051 3,153,098 1,877,686 1,877,686 1,765,306

241,219 241,219 208,475 33,700 33,700 29,538

5,000 5,000 5,000 Total ....................................................................................................... 6,150,656 6,150,656 5,161,417

BUREAU OF TRAFFIC SERVICES - 81 - 14,103,098 14,103,098 13,739,408

8,906,175 8,906,175 9,849,401 133,600 133,600 113,646 700,000 700,000 270,800

28,000 28,000 28,000 Total ....................................................................................................... 23,870,873 23,870,873 24,001,255

2005.9581-Reserved for Excess Expenses Related to Snow Events ...........2005.9610-To Reimburse Corporate Fund for Pension Payments ...............

2005.9076-City's Contribution to Medicare Tax ............................................2005.9027-For the City Contribution to Social Security Tax .........................

Chargeable to fund ....................................................................................2005.9611-To Reimburse the Corporate Fund for Indirect Costs

Management and Communication.............................................................2005.9774-Transfer for Services provided by the Office of Emergency


2045.9400-Internal Transfers and Reimbursements ....................................

TOTAL GENERAL GOVERNMENT ..........................................................

2020.0400-Equipment ...................................................................................

2045.0300-Commodities and Materials ........................................................2045.0100-Contractual Services ...................................................................


2070.0992-For Tow Storage Refund ............................................................


2020.0000-Personnel Services .....................................................................2020.0100-Contractual Services ...................................................................


2045.0400-Equipment ...................................................................................

2070.9400-Internal Transfers and Reimbursements ....................................

155




STREETS AND SANITATION-Continued

$ 37,204,227 $ 37,204,227 $ 37,211,671

TRANSPORTATION

DIVISION OF ENGINEERING - 84 -7,687,137 7,687,137 6,676,864 4,847,267 4,847,267 4,838,278

44,878 44,878 33,819 18,310 18,310 14,430

Total ....................................................................................................... 12,597,592 12,597,592 11,563,391

DIVISION OF INFRASTRUCTURE MANAGEMENT - 84 -5,129,590 5,129,590 4,622,682 4,775,094 4,775,094 4,740,043

99,200 99,200 72,910 39,150 39,150 35,558

4,000 4,000 4,000 Total ....................................................................................................... 10,047,034 10,047,034 9,475,193

DIVISION OF ELECTRICAL OPERATIONS - 84 -5,205,604 5,205,604 5,139,765 1,299,485 1,299,485 1,296,402

117,560 117,560 121,006 1,553,710 1,553,710 1,455,156

3,250 3,250 3,052 Total ....................................................................................................... 8,179,609 8,179,609 8,015,381

DIVISON OF IN-HOUSE CONSTRUCTION - 84 -44,793,399 44,793,399 43,181,061

393,853 393,853 371,078 18,500 18,500 19,096

2,746,963 2,746,963 2,549,464 35,000 35,000 29,295

Total ....................................................................................................... 47,987,715 47,987,715 46,149,994

78,811,950 78,811,950 75,203,959 TOTAL TRANSPORTATION .....................................................................


TOTAL STREETS AND SANITATION ......................................................

2155.0100-Contractual Services ...................................................................2155.0200-Travel ..........................................................................................


2150.0400-Equipment ...................................................................................



2125.0200-Travel ..........................................................................................


2135.0200-Travel ..........................................................................................


2150.0200-Travel ..........................................................................................





2135.9400-Internal Transfers and Reimbursements.....................................

2155.0300-Commodities and Materials ........................................................ 2155.9400-Internal Transfers and Reimbursements ....................................

156



VEHICLE TAX FUND - Concluded

$ 222,432,000 $ 222,432,000 $ 206,135,127

MOTOR FUEL TAX AND PROJECT FUND

GENERAL GOVERNMENT


BUREAU OF ASSET MANAGEMENT15,592,576 15,592,576 14,601,556

Total ....................................................................................................... 15,592,576 15,592,576 14,601,556

15,592,576 15,592,576 14,601,556

15,592,576 15,592,576 14,601,556

STREETS AND SANITATION - 81 -

BUREAU OF STREET OPERATIONS12,721,200 12,721,200 6,859,070

Total ....................................................................................................... 12,721,200 12,721,200 6,859,070

12,721,200 12,721,200 6,859,070

TRANSPORTATION - 84 -

DIVISION OF ELECTRICAL OPERATIONS3,000,000 3,000,000 3,000,000

12,970,658 12,970,658 11,639,953 2,250,825 2,250,825 2,243,096

Total ....................................................................................................... 18,221,483 18,221,483 16,883,049

DIVISION OF IN-HOUSE CONSTRUCTION6,735,591 6,735,591 5,329,073

825,000 825,000 825,000 8,175,334 8,175,334 8,175,189

Total ....................................................................................................... 15,735,925 15,735,925 14,329,262

33,957,408 33,957,408 31,212,311


2155.0100-Contractual Services....................................................................

TOTAL TRANSPORTATION .....................................................................

2155.0300-Commodities and Materials.........................................................

TOTAL VEHICLE TAX FUND ...................................................................


TOTAL STREETS AND SANITATION ......................................................

2150.0300-Commodities and Materials.........................................................

TOTAL FLEET AND FACILITY MANAGEMENT .......................................


2005.9189.For Payment of the Annual Contribution to the CTA....................



157



MOTOR FUEL TAX AND PROJECT FUND - Concluded

TOTAL MOTOR FUEL TAX AND PROJECT FUND ............................ $ 62,271,184 $ 62,271,184 $ 52,672,937

MISCELLANEOUS FUND

EMERGENCY COMMUNICATION

GENERAL GOVERNMENT

DEPARTMENT OF FINANCE - GENERAL - 99 -100,000 100,000 -

95,313,000 95,313,000 93,818,391 Total ....................................................................................................... 95,413,000 95,413,000 93,818,391

95,413,000 95,413,000 93,818,391

SPECIAL DEPOSIT ACTIVITIES

CHICAGO PARKING METERS

GENERAL GOVERNMENT

FINANCE - GENERAL - 99 -21,736,220 21,736,220 21,736,219

Total ....................................................................................................... 21,736,220 21,736,220 21,736,219

21,736,220 21,736,220 21,736,219

PUBLIC SAFETY

DEPARTMENT OF POLICE - 57 -5,723,140 5,723,140 3,195,992

Total ....................................................................................................... 5,723,140 5,723,140 3,195,992

TOTAL SPECIAL DEPOSIT ACTIVITIES .............................................. 27,459,360 27,459,360 24,932,211

TOTAL CHICAGO PARKING METERS ....................................................

2005.9999- Miscellaneous ............................................................................


2005.9639-For Operations of the Office of Emergency

TOTAL EMERGENCY COMMUNICATION ...............................................


Management and Communications ..........................................................

158



MISCELLANEOUS FUND-Continued

COMMONWEALTH EDISON SETTLEMENT

GENERAL GOVERNMENT

OFFICE OF THE MAYOR - 01 -$ 224,400 $ 224,400 $ -

360,686 360,686 676 144,828 144,828 -

54,000 54,000 - Total ....................................................................................................... 783,914 783,914 676

DEPARTMENT OF LAW- 31 314,500 314,500 91,460

Total ....................................................................................................... 314,500 314,500 91,460

DEPARTMENT OF FLEET AND FACILITY MANAGEMENT- 38100,000 100,000 -

Total ....................................................................................................... 100,000 100,000 -

DEPARTMENT OF TRANSPORTATION- 8496,642 96,642 -

Total ....................................................................................................... 96,642 96,642 -

TOTAL COMMONWEALTH EDISON SETTLEMENT ........................... 1,295,056 1,295,056 92,136

DEPARTURE TAX

GENERAL GOVERNMENT

DEPARTMENT OF FINANCE - 27 -472,137 472,137 472,137

Total ....................................................................................................... 472,137 472,137 472,137

DEPARTMENT OF AVIATION - 85 -393,735 393,735 393,735

Total ....................................................................................................... 393,735 393,735 393,735

TOTAL GENERAL GOVERNMENT........................................................ 865,872 865,872 865,872

2005.9211 Technical Support, Networks and Digital Assets ........................



2005.9214 Energy Efficiencies and Renewables ..........................................


2005.9211 Technical Support, Networks and Digital Assets ........................2005.9210 Personnel ....................................................................................


2005.9215 Climate Leadership and General Events ....................................

159



MISCELLANEOUS FUND-Concluded

PUBLIC SAFETY

DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION - 70 -$ 212,657 $ 212,657 $ 212,657

Total ....................................................................................................... 212,657 212,657 212,657

TOTAL DEPARTURE TAX .................................................................... 1,078,529 1,078,529 1,078,529

ALLIED SETTLEMENT FUND

GENERAL GOVERNMENT

DEPARTMENT OF LAW - 31 -

250,000 250,000 - Total ....................................................................................................... 250,000 250,000 -

DEPARTMENT OF PROCUREMENT SERVICES - 35 -875,000 875,000 427,266

7,500 7,500 - 10,000 10,000 4,197 75,000 75,000 -

1,400,000 1,400,000 - Total ....................................................................................................... 2,367,500 2,367,500 431,463

TOTAL ALLIED SETTLEMENT.............................................................. 2,617,500 2,617,500 431,463

CTA REAL PROPERTY TRANSFER TAX

FINANCE GENERAL - 99 -

65,776,000 65,776,000 62,021,444

664,000 664,000 664,000 Total ........................................................................................................... 66,440,000 66,440,000 62,685,444

66,440,000 66,440,000 62,685,444

194,303,445 194,303,445 183,038,174

Transfer Tax-CTA Portion .........................................................................



Collection of the Real Property Transfer Tax-CTA Portion ......................

2005.9205-For Distribution of the Net Proceeds of the Real Property

2005.0200-Travel ..........................................................................................2005.0100-Contractual Services ...................................................................

2005.0931-For the Payment of Tort and Non-Tort Judgments, Outside

TOTAL CTA REAL PROPERTY TRANSFER TAX .......................................

2005.9640-To Reimburse Corporate Fund for Costs Incurred for

2005.9012 Procurement Services .................................................................2005.0400-Equipment ...................................................................................

TOTAL MISCELLANEOUS FUND ............................................................

Counsel Expenses and Expert Costs ........................................................

160



LIBRARY FUND

GENERAL GOVERNMENT

DEPARTMENT OF INNOVATION AND TECHNOLOGY - 06 -$ 1,142,765 $ 1,142,765 $ 1,186,578

Total ....................................................................................................... 1,142,765 1,142,765 1,186,578


BUREAU OF FACILITY MANAGEMENT - 38 -6,965,769 6,965,769 6,189,319

574,772 574,772 572,631 Total ....................................................................................................... 7,540,541 7,540,541 6,761,950

BUREAU OF ASSET MANAGEMENT -38-1,387,517 1,387,517 1,195,394 3,970,380 3,970,380 3,415,242

Total ....................................................................................................... 5,357,897 5,357,897 4,610,636

BUREAU OF FLEET OPERATIONS -38-37,485 37,485 - 15,000 15,000 15,000

Total ....................................................................................................... 52,485 52,485 15,000

TOTAL DEPARTMENT OF FLEET AND FACILITY MANAGEMENT..... 12,950,923 12,950,923 11,387,586

DEPARTMENT OF FINANCE - GENERAL - 99 -9,870,103 9,870,103 7,524,453 1,227,429 1,227,429 1,020,346

100,000 100,000 92,618 1,700,000 1,700,000 2,147,429

19,150 19,150 19,150 810,584 810,584 810,584

7,335,236 7,335,236 7,335,236 7,500,000 7,500,000 7,442,877 3,141,000 3,141,000 -

Total ....................................................................................................... 31,703,502 31,703,502 26,392,693

TOTAL GENERAL GOVERNMENT........................................................... 45,797,190 45,797,190 38,966,857




2005.9027-City's Contribution to Social Security Tax ...................................

2005.9980-Municipal Fund Pension Allocation .............................................


2005.9076-City's Contribution to Medicare Tax ............................................2005.9112-Property Maintenance Contract for the




2005.9199 -For Purchase of Chicago Public Library Books and Materials....

2005.0955-Interest on Library Financing ......................................................


Harold Washington Library Center.............................................................

2005.0400-Equipment ...................................................................................


161



LIBRARY FUND - Concluded

CULTURAL AND RECREATIONAL

CHICAGO PUBLIC LIBRARY - 91 -$ 52,712,229 $ 52,712,229 $ 52,391,365

3,286,890 3,286,890 3,184,092 23,880 23,880 23,880

600,811 600,811 582,267 30,000 30,000 30,000

Total ....................................................................................................... 56,653,810 56,653,810 56,211,604

TOTAL LIBRARY FUND ....................................................................... 102,451,000 102,451,000 95,178,461

SPECIAL EVENTS, TOURISM AND FESTIVALS FUND

SPECIAL EVENTS AND MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX

GENERAL GOVERNMENT

OFFICE OF THE MAYOR - 01 -382,056 382,056 382,982

Total ....................................................................................................... 382,056 382,056 382,982

CITY COUNCIL COMMITTEE ON SPECIAL EVENTS,CULTURAL AFFAIRS AND RECREATION- 15 -

153,388 153,388 140,495 8,720 8,720 600

Total ....................................................................................................... 162,108 162,108 141,095

DEPARTMENT OF FINANCE - GENERAL - 99 -1,048,311 1,048,311 686,895 4,857,034 4,857,034 4,573,702

183,750 183,750 - 1,922 1,922 1,922

81,372 81,372 81,372 528,643 528,643 528,643

1,056,753 1,056,753 1,056,753

4,443,000 4,443,000 4,443,000 1,898,500 1,898,500 1,818,500

Total ....................................................................................................... 14,099,285 14,099,285 13,190,787

2005.9400-Internal Transfers & Reimbursements ........................................

2005.0000-For Personnel Services ..............................................................

2005.9027-City's Contribution to Social Security Tax ...................................2005.0991-To Provide for Matching and Supplementary Grant Funds ........

2005.0300-Commodities and Materials ........................................................2005.0200-Travel ..........................................................................................

2005.9124-For the Sisters Cities Program ....................................................

Costs Chargeable to Fund ........................................................................






2005.9076-City's Contribution to Medicare Tax ............................................

2005.9610-To Reimburse Corporate Fund for Pension Payments ...............

2005.9700-Reimbursable Transfers Between Funds ...................................

2005.9611-To Reimburse the Corporate Fund for Indirect


162

Schedule D-5 - ConcludedCITY OF CHICAGO, ILLINOISSPECIAL REVENUE FUNDSSCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)Year Ended December 31, 2017

SPECIAL EVENTS, TOURISM AND FESTIVALS FUND - Concluded

TOTAL GENERAL GOVERNMENT........................................................... $ 14,643,449 $ 14,643,449 $ 13,714,864

CULTURAL AND RECREATIONAL

DEPARTMENT OF CULTURAL AFFAIRS - 23 -6,485,703 6,485,703 5,374,950 3,240,303 3,240,303 3,666,255

10,500 10,500 1,148 95,000 95,000 85,643

6,950,831 6,950,831 6,950,831 1,250,000 1,250,000 1,250,000

265,500 265,500 265,090 12,994,714 12,994,714 12,950,053

Total ...................................................................................................... 31,292,551 31,292,551 30,543,970

31,292,551 31,292,551 30,543,970

45,936,000 45,936,000 44,258,834

TOTAL SPECIAL EVENTS, TOURISMAND FESTIVALS FUND ....................................................................... 45,936,000 45,936,000 44,258,834

HEALTH AND WELFARE FUND

NORFOLK SOUTHERN

GENERAL GOVERNMENT

DEPARTMENT OF PLANNING AND DEVELOPMENT- GENERAL - 54 -800,000 800,000 800,000

Total ...................................................................................................... 800,000 800,000 800,000

800,000 800,000 800,000

TOTAL NORFOLK SOUTHERN ............................................................... 800,000 800,000 800,000

800,000 800,000 800,000

TOTAL SPECIAL REVENUE FUNDS ................................................. $ 628,193,629 $ 628,193,629 $ 582,083,533

Actual


TOTAL CULTURAL AND RECREATIONAL .............................................

TOTAL MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX ...................

TOTAL HEALTH AND WELFARE FUND ................................................

2005.9001 Conservation Innovation Grant (CIG) .........................................

Original Final

2015.0000-Personnel Services ....................................................................2015.0100-Contractual Services ..................................................................2015.0200-Travel .........................................................................................2015.0300-Commodities and Materials ........................................................2015.9188-Expenses Related to the Operations of Millennium Park ...........2015.9219-Implementation of Cultural Plan .................................................2015.9288-Expenses Related to the Programming for Millennium Park ......2015.9800-Special Events Projects .............................................................

Budget Budget

163

NONMAJOR CAPITAL PROJECT FUNDS

Highway and Transportation Projects - Proceeds of debt used to improve highways and transportation systems. Building Projects - Proceeds of debt used to finance exterior and interior construction and mechanical work on buildings used by City departments and the public. Equipment Projects - Proceeds of debt used to purchase capital assets and maintain equipment and machinery for various City departments. Chicago Public Building Commission - Accounts for assets held by Public Building Commission as trustee or agent during the interim financing period of certain City projects.

164

Schedule E-1CITY OF CHICAGO, ILLINOISNONMAJOR CAPITAL PROJECT FUNDSCOMBINING BALANCE SHEETDecember 31, 2017(Amounts are in Thousands of Dollars)

ASSETS$ 9 $ 1 $ 9,308 $ - $ 9,318

13 101 56,451 - 56,565 - - 308 - 308 - - 703 - 703 - - - 18,040 18,040

Total Assets ........................................... $ 22 $ 102 $ 66,770 $ 18,040 $ 84,934

LIABILITIES AND FUND BALANCELiabilities:

$ 122 $ 1 $ 5,776 $ - $ 5,899 - 703 - 18,040 18,743 - - 241 - 241

Total Liabilities ....................................... 122 704 6,017 18,040 24,883

Fund Balance:- - 98,714 - 98,714

(100) (602) (37,961) - (38,663) Total Fund Balance ................................ (100) (602) 60,753 - 60,051

Total Liabilities and Fund Balance ......... $ 22 $ 102 $ 66,770 $ 18,040 $ 84,934

ChicagoPublic

BuildingCommission

Highwayand

BuildingProjects

ProjectFunds

Restricted ..................................................

Accrued and Other Liabilities ....................

Due from Other Governments ........................

Voucher Warrants Payable .......................

EquipmentProjects

TotalNonmajor

CapitalTransportation

Projects

Due to Other Funds ...................................

Cash and Cash Equivalents ..........................Investments ....................................................Accounts Receivable (Net of Allowances) .....Due from Other Funds ...................................

Unassigned ...............................................

165

Schedule E-2CITY OF CHICAGO, ILLINOISNONMAJOR CAPITAL PROJECT FUNDSCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCEYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

REVENUES$ 1 $ 5 $ 371 $ - $ 377

- - 970 - 970 Total Revenues ...................................... 1 5 1,341 - 1,347

EXPENDITURES- - 62,591 - 62,591

Total Expenditures ................................. - - 62,591 - 62,591

1 5 (61,250) - (61,244)

OTHER FINANCING SOURCES (USES)- - 135,166 - 135,166

Total Other Financing Sources (Uses) ... - - 135,166 - 135,166

1 5 73,916 - 73,922 (101) (607) (13,163) - (13,871)

$ (100) $ (602) $ 60,753 $ - $ 60,051

Highwayand

Total

TransportationProjects

BuildingProjects Projects

Equipment

NonmajorCapitalProjectFundsCommission

BuildingPublic

Chicago

Capital Outlay ............................................

Investment Income ....................................Miscellaneous ...........................................

Issuance of Debt .......................................

Fund Balance - End of Year ...........................

Revenues Over (Under) Expenditures ......

Net Change in Fund Balance .........................Fund Balance - Beginning of Year .................

166


167

FIDUCIARY FUNDS

AGENCY FUNDS - Account for transactions for assets held by the City as agent for various entities. PENSION TRUST FUNDS - Expenditures for employee pensions as provided by employee and employer contributions and investment earnings.

168

Schedule F-1CITY OF CHICAGO, ILLINOISFIDUCIARY FUNDS - AGENCY FUNDSCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIESDecember 31, 2017(Amounts are in Thousands of Dollars)

ASSETS:Cash,

$ 6,541 $ 125 $ 124,597 $ 12,576 $ 3,884 $ 147,723Additions............... 3,578,267 779 4,421,363 143,778 862 8,145,049Deductions............ 3,581,229 734 4,465,869 134,051 809 8,182,692

Cash,3,579 170 80,091 22,303 3,937 110,080

Investments,13,994 268 111,085 26,904 289 152,540

Additions............... 18,376 715 8,702,253 86,061 770 8,808,175Deductions............ 27,630 754 8,739,258 82,818 812 8,851,272

Investments,4,740 229 74,080 30,147 247 109,443

Cash and Investmentswith Escrow Agent,

- - 9,066 122 - 9,188Additions............... - - 97,022 - - 97,022Deductions............ - - 95,593 - - 95,593

Cash and Investmentswith Escrow Agent,

- - 10,495 122 - 10,617

Accounts Receivables,645 3,846 165,323 941 1,025 171,780

Additions............... 236 3 315,214 14,497 4 329,954Deductions............ 881 2 386,982 14,251 6 402,122

Accounts Receivables,- 3,847 93,555 1,187 1,023 99,612

Licenseand

Payroll Payroll Other Special

Fund Fund Fund

SpecialClearing Deduction Clearing Deposit Assessment

Fund Fund Total

January 1, 2017...........

December 31, 2017.....

January 1, 2017...........

December 31, 2017.....

January 1, 2017...........

December 31, 2017.....

January 1, 2017...........

December 31, 2017.....

169

Schedule F-1 - ConcludedCITY OF CHICAGO, ILLINOISFIDUCIARY FUNDS - AGENCY FUNDSCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIESDecember 31, 2017(Amounts are in Thousands of Dollars)

ASSETS - Concluded:Total Assets,

$ 21,180 $ 4,239 $ 410,071 $ 40,543 $ 5,198 $ 481,231Additions............... 3,596,879 1,497 13,535,852 244,336 1,636 17,380,200Deductions............ 3,609,740 1,490 13,687,702 231,120 1,627 17,531,679

Total Assets,$ 8,319 $ 4,246 $ 258,221 $ 53,759 $ 5,207 $ 329,752

LIABILITIES:Voucher Warrants Payable,

$ 178 $ 34 $ 39,076 $ 3,145 $ 4 $ 42,437Additions............... - - 713,050 12,065 9 725,124Deductions............ 178 - 733,909 11,251 9 745,347

Voucher Warrants Payable,- 34 18,217 3,959 4 22,214

Accrued Liabilities, 21,002 4,205 370,995 37,398 5,194 438,794

Additions............... 9,629,540 7 290,095 18,661 20 9,938,323Deductions............ 9,642,223 - 421,086 6,259 11 10,069,579

Accrued Liabilities,8,319 4,212 240,004 49,800 5,203 307,538

Total Liabilities,21,180 4,239 410,071 40,543 5,198 481,231

Additions............... 9,629,540 7 1,003,145 30,726 29 10,663,447Deductions............ 9,642,401 - 1,154,995 17,510 20 10,814,926

Total Liabilities$ 8,319 $ 4,246 $ 258,221 $ 53,759 $ 5,207 $ 329,752 December 31, 2017.....

Licenseand

Payroll Payroll Other Special SpecialClearing Deduction Clearing Deposit Assessment

Fund Fund Fund Fund Fund Total

January 1, 2017...........

December 31, 2017.....

January 1, 2017...........

December 31, 2017.....

January 1, 2017...........

December 31, 2017.....

January 1, 2017...........

170

Schedule F-2CITY OF CHICAGO, ILLINOISFIDUCIARY FUNDS - PENSION TRUST FUNDSCOMBINING STATEMENT OF PLAN NET POSITIONDecember 31, 2017(Amounts are in Thousands of Dollars)

ASSETS$ 492 $ 40,134 $ 156,036 $ 46,195 $ 242,857

Receivables272,569 34,663 558,107 193,238 1,058,577 12,121 2,414 5,822 7,970 28,327

Total Receivables ................... 284,690 37,077 563,929 201,208 1,086,904

18,014 1,599 72,767 31,516 123,896

Property, Plant,31 1 - 166 198

Investments, at Fair ValueBonds and U.S. Government

986,492 255,737 513,292 190,201 1,945,722 2,089,698 696,436 1,485,918 617,149 4,889,201

431,421 65,763 72,810 16,486 586,480 788,536 184,592 474,247 31,170 1,478,545

Total Investments ................... 4,296,147 1,202,528 2,546,267 855,006 8,899,948

Invested Securities Lending243,632 51,184 146,521 111,710 553,047

4,843,006 1,332,523 3,485,520 1,245,801 10,906,850

- 274 - - 274

LIABILITIES45,356 14,058 216,933 7,938 284,285

243,632 51,184 146,521 111,710 553,047

Total Liabilities ........................ 288,988 65,242 363,454 119,648 837,332

Net Position Restricted for$ 4,554,018 $ 1,267,555 $ 3,122,066 $ 1,126,153 $ 10,069,792 Pension Benefits .......................

Other .........................................

Collateral ...................................

Total Assets ...............................

Voucher Warrants Payable ..........Securities Lending Collateral ........

Deferred Outflows ........................

Interest and Dividends ...............

Due from City ...............................

Obligations ................................Stocks ........................................

Equipment and Other ................

Mortgages and Real Estate .......

Pension Trust Funds


Cash and Cash Equivalents .........

Employer and Other ..................

171

Schedule F-3CITY OF CHICAGO, ILLINOISFIDUCIARY FUNDS - PENSION TRUST FUNDSCOMBINING STATEMENT OF CHANGES IN PLAN NET POSITIONYear Ended December 31, 2017(Amounts are in Thousands of Dollars)

ADDITIONSContributions

$ 134,765 $ 17,411 $ 103,011 $ 47,364 $ 302,551 261,764 35,456 494,483 228,453 1,020,156

Total Contributions ................. 396,529 52,867 597,494 275,817 1,322,707

Investment IncomeNet Appreciation in Fair

Value of Investments .............. 522,085 196,486 371,090 125,048 1,214,709 106,291 19,720 50,557 20,441 197,009 (19,341) (8,463) (10,129) (5,494) (43,427)

Net Investment Income .......... 609,035 207,743 411,518 139,995 1,368,291

Securities Lending Transactions3,733 769 2,150 796 7,448

(2,253) (530) (1,381) (199) (4,363) Net Securities Lending Transactions ....................... 1,480 239 769 597 3,085

Other Additions5,393 - - - 5,393

Total Additions ........................ 1,012,437 260,849 1,009,781 416,409 2,699,476

DEDUCTIONSBenefits and Refunds of

888,174 157,050 747,891 306,098 2,099,213 6,473 3,985 4,843 3,172 18,473

Total Deductions .................... 894,647 161,035 752,734 309,270 2,117,686

117,790 99,814 257,047 107,139 581,790 Net Position Restricted for

Pension Benefits:Beginning of Year ................... 4,436,228 1,167,741 2,865,019 1,019,014 9,488,002

End of Year ............................ $ 4,554,018 $ 1,267,555 $ 3,122,066 $ 1,126,153 $ 10,069,792

Securities Lending Expense ......

Deductions ................................Administrative and General ..........

Net Decrease in Net Position .......

OPEB Termination ....................

Employees ................................City ............................................

Interest, Dividends and Other ....Investment Expense ..................

Securities Lending Income ........

Pension Trust Funds


172


173

Contents:

Financial TrendsThese schedules contain trend information to help the reader understand how the City’sfinancial performance and well being have changed over time.

Revenue CapacityThese schedules contain information to help the reader assess the City’s most significantlocal revenue source, the property tax.

Debt CapacityThese schedules present information to help the reader assess the affordability of the City’scurrent levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic InformationThese schedules offer demographic and economic indicators to help the reader understandthe environment within which the City’s financial activities take place.

Operating Information These schedules contain service and infrastructure data to help the reader understand howthe information in the City’s financial report relates to the services the City provides and theactivities it performs.

PART III

STATISTICAL SECTION(UNAUDITED)

This part of the City's comprehensive annual financial report presents detailed information as acontext for understanding what the information in the financial statements, note disclosures andrequired supplementary information says about the City’s overall financial health.

174

Table 1CITY OF CHICAGONET POSITION BY COMPONENTLast Ten Fiscal Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

Governmental Activities:$ 494,930 $ 251,103 $ (324,284) $ (299,859)

2,842,149 3,735,128 3,611,533 1,596,408 (4,092,388) (5,840,026) (6,582,562) (5,691,215)

Total governmental activities,$ (755,309) $ (1,853,795) $ (3,295,313) $ (4,394,666)

Business-type activities:$ 2,323,394 $ 2,286,658 $ 2,365,522 $ 2,451,787

779,894 821,909 790,881 874,837 (1,517,891) (1,541,136) (1,431,859) (1,541,515)

Total business type activities,$ 1,585,397 $ 1,567,431 $ 1,724,544 $ 1,785,109

Primary Government:$ 2,818,324 $ 2,537,761 $ 2,041,238 $ 2,151,928

3,622,043 4,557,037 4,402,414 2,471,245 (5,610,279) (7,381,162) (8,014,421) (7,232,730)

Total primary government,$ 830,088 $ (286,364) $ (1,570,769) $ (2,609,557)

Notes: (1) As a result of the implementation of GASB Statement No. 53, the results of 2009 were restated, retroactively.

(2) The City implemented GASB Statement No. 68 in 2015 and the net position was restated at January 1, 2015.

net position ........................................

Net Investment in Capital Assets ....Restricted ........................................Unrestricted .....................................

net position ........................................

Unrestricted .....................................

201120102008

Net Investment in Capital Assets ....Restricted ........................................

Restricted ........................................Net Investment in Capital Assets ....

2009 (1)

net position ........................................

Unrestricted (deficit) ........................

175

$ (215,961) $ (242,862) $ 28,744 $ (292,432) $ (65,466) $ (551,074) 1,908,516 1,940,911 1,491,995 1,519,914 2,269,517 2,416,071

(7,537,057) (9,120,377) (10,564,064) (25,263,289) (29,676,310) (30,579,844)

$ (5,844,502) $ (7,422,328) $ (9,043,325) $ (24,035,807) $ (27,472,259) $ (28,714,847)

$ 2,388,310 $ 2,446,242 $ 2,713,825 $ 2,892,548 $ 3,373,063 $ 3,866,056 982,517 883,758 978,972 1,042,980 879,934 868,021

(1,354,572) (1,278,777) (1,185,755) (3,731,167) (4,210,657) (4,387,321)

$ 2,016,255 $ 2,051,223 $ 2,507,042 $ 204,361 $ 42,340 $ 346,756

$ 2,172,349 $ 2,203,380 $ 2,742,569 $ 2,600,116 $ 3,307,597 $ 3,314,982 2,891,033 2,824,669 2,470,967 2,562,894 3,149,451 3,284,092

(8,891,629) (10,399,154) (11,749,819) (28,994,456) (33,886,967) (34,967,165)

$ (3,828,247) $ (5,371,105) $ (6,536,283) $ (23,831,446) $ (27,429,919) $ (28,368,091)

20172012 2013 2014 2015 (2) 2016

176

Table 2CITY OF CHICAGOCHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTINGLast Ten Fiscal Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

ExpensesGovernmental Activities:

$ 2,384,586 $ 2,364,754 $ 2,557,681 $ 2,734,419 2,434,842 2,521,151 2,824,028 2,689,471

371,112 297,156 235,863 245,898 381,090 351,101 373,437 410,802 170,838 166,914 142,352 151,152 140,065 129,996 126,939 102,808 381,504 386,125 404,218 474,226

6,264,037 6,217,197 6,664,518 6,808,776

Business-type Activities:371,441 382,502 399,347 416,289 158,292 169,982 184,888 194,838

Chicago Midway217,609 206,613 224,465 218,172

Chicago-O'Hare803,404 811,710 834,487 879,281 12,359 11,775 11,312 10,930

1,563,105 1,582,582 1,654,499 1,719,510

$ 7,827,142 $ 7,799,779 $ 8,319,017 $ 8,528,286

2010 2011

Cultural and Recreational ......................

Total Primary Government ......................

Total Business-type Activities ..................

Transportation .......................................Health ....................................................

International Airport ...............................

General Government ............................Public Safety .........................................

Interest on Long-term Debt ...................Total Governmental Activities ..................

Water ....................................................Sewer ....................................................

Chicago Skyway ....................................

20092008

International Airport ...............................

Streets and Sanitation ...........................

177

$ 2,751,944 $ 2,667,205 $ 2,857,789 $ 6,238,028 $ 4,549,261 $ 2,914,655 2,910,160 3,044,811 2,913,469 3,192,197 4,266,146 3,636,102

228,622 242,500 275,814 253,432 256,985 247,836 383,510 400,506 475,751 471,689 378,779 414,044 123,055 119,678 125,068 119,199 116,692 124,090 146,283 128,302 121,548 118,775 114,676 121,483 460,660 477,959 580,701 861,293 495,856 722,008

7,004,234 7,080,961 7,350,140 11,254,613 10,178,395 8,180,218

417,499 442,474 455,433 900,346 816,012 581,642 195,911 216,587 225,600 505,032 350,388 293,047

225,867 241,080 248,231 315,724 320,033 284,974

955,276 920,781 1,029,559 1,380,512 1,330,240 1,256,665 10,621 10,585 10,314 8,727 8,651 8,506

1,805,174 1,831,507 1,969,137 3,110,341 2,825,324 2,424,834

$ 8,809,408 $ 8,912,468 $ 9,319,277 $ 14,364,954 $ 13,003,719 $ 10,605,052

2015 (2)2014 20172012 2013 2016

178

Table 2 - ContinuedCITY OF CHICAGOCHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTINGLast Ten Fiscal Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

Program RevenuesGovernmental Activities:

Licenses, Permits, Fines andCharges for Services:

$ 440,023 $ 382,617 $ 370,028 $ 388,886 129,518 158,490 150,710 211,157 40,578 30,990 38,092 37,291 14,071 24,895 21,640 28,613 3,157 2,504 8,332 7,796

25,725 22,375 21,635 7,201 624,356 611,301 674,677 788,812 139,949 115,261 114,871 282,008

1,417,377 1,348,433 1,399,985 1,751,764

Business-type Activities:Licenses, Permits, Fines and

Charges for Services:370,244 410,213 458,395 454,221 160,005 175,163 198,229 203,349

Chicago Midway124,985 122,301 149,056 157,371

Chicago-O'Hare684,282 624,443 702,603 679,402

- - - - 224,823 211,174 246,309 257,438

Total Business-type Activities and1,564,339 1,543,294 1,754,592 1,751,781

Total Primary Government$ 2,981,716 $ 2,891,727 $ 3,154,577 $ 3,503,545

Net (Expenses)/Revenues$ (4,846,660) $ (4,868,764) $ (5,264,533) $ (5,057,012)

1,234 (39,288) 100,093 32,271 Total Primary Government

$ (4,845,426) $ (4,908,052) $ (5,164,440) $ (5,024,741)

2011

Program Revenues ...............................

Program Revenues ...............................

Governmental Activities ........................Business-type Activities ........................

Net Expense ..........................................

Capital Grants and Contributions ..........Total Governmental Activities ..................

Water ..................................................Sewer ..................................................

International Airport ............................

International Airport ............................Chicago Skyway .................................

Capital Grants and Contributions ..........

Transportation .....................................Health .................................................Cultural and Recreational ...................

Operating Grants and Contributions .....

Public Safety .......................................Streets and Sanitation ........................

2009 20102008

General Government ..........................

179

$ 452,892 $ 467,423 $ 505,275 $ 534,325 $ 501,468 $ 521,232 199,572 196,344 208,206 182,670 202,379 194,586 42,138 45,629 44,552 39,602 100,996 95,180 39,343 46,076 44,278 37,522 52,524 66,994 1,751 2,023 2,281 5,839 7,232 6,881

14,454 15,947 14,643 14,850 15,122 15,407 748,256 634,384 470,659 496,679 516,728 473,214 172,456 184,415 249,860 249,064 221,532 205,505

1,670,862 1,592,241 1,539,754 1,560,551 1,617,981 1,578,999

576,287 637,114 692,634 769,408 761,411 759,014 253,912 292,290 322,228 375,877 368,966 357,623

201,749 221,205 216,662 225,383 232,483 244,073

857,114 870,654 1,012,529 1,029,788 1,139,380 1,167,089 - - - - - -

83,219 213,067 95,624 85,968 115,206 119,976

1,972,281 2,234,330 2,339,677 2,486,424 2,617,446 2,647,775

$ 3,643,143 $ 3,826,571 $ 3,879,431 $ 4,046,975 $ 4,235,427 $ 4,226,774

$ (5,333,372) $ (5,488,720) $ (5,810,386) $ (9,694,062) $ (8,560,414) $ (6,601,219) 167,107 402,823 370,540 (623,917) (207,878) 222,941

$ (5,166,265) $ (5,085,897) $ (5,439,846) $ (10,317,979) $ (8,768,292) $ (6,378,278)

2015 (2)2014 20172012 2013 2016

180

Table 2 - ConcludedCITY OF CHICAGOCHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTINGLast Ten Fiscal Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

General Revenues and OtherChanges in Net PositionGovernmental Activities:

Taxes$ 799,878 $ 797,026 $ 796,928 $ 934,870

629,497 579,101 561,936 564,236 273,951 252,282 260,364 310,626 321,362 333,199 335,235 331,441 275,434 205,026 227,772 250,486 531,314 501,042 477,241 457,192 262,734 250,982 259,325 269,258

Grants and Contributions Not712,360 601,198 654,043 598,498 90,176 12,296 100,269 64,294

Loss on Disposal and- - - - - - - 1,000

79,279 238,126 149,902 175,758 3,975,985 3,770,278 3,823,015 3,957,659

Business-type Activities:57,451 12,381 6,831 48,517

Loss on Disposal and- - - -

37,605 8,941 50,190 34,687 - - - (53,910) - - - (1,000)

95,056 21,322 57,021 28,294 $ 4,071,041 $ 3,791,600 $ 3,880,036 $ 3,985,953

Change in Net Position$ (870,675) $ (1,098,486) $ (1,441,518) $ (1,099,353)

96,290 (17,966) 157,114 60,565 $ (774,385) $ (1,116,452) $ (1,284,404) $ (1,038,788)

NOTES:

(1) As a result of the implementation of GASB Statement No. 53, the results of 2009 were restated, retroactively.(2) The City implemented GASB Statement No. 68 in 2015 and the net position was restated at January 1, 2015.Employee Pensions and Other have been reclassified by function.

Sale of Capital Assets ......................

Other Taxes ........................................

Sales Tax ............................................

2011

Special Area Tax ................................

Property Tax .......................................

2009 (1)2008 2010

Governmental Activities ...........................Business-type Activities ...........................

Utility Tax ............................................

Restricted to Specific Programs ............


Unrestricted Investment Earnings .........

Transfers ...............................................Miscellaneous .......................................

Total Governmental Activities .................

Special Item ..........................................


Investment Earnings .............................

Miscellaneous .......................................

Transfers ...............................................Total Business-type Activities ..................

Transaction Tax ..................................Transportation Tax .............................

Sale of Capital Assets ......................

181

$ 896,246 $ 906,740 $ 926,839 $ 1,179,395 $ 1,264,473 $ 1,327,236 548,682 547,651 570,469 562,697 557,992 609,205 294,417 307,837 324,273 346,319 347,131 344,911 373,544 381,080 406,624 384,978 449,744 476,329 281,957 344,493 379,256 466,432 542,896 497,965 274,617 306,057 260,256 444,972 537,026 605,548 294,280 298,951 323,946 369,405 395,889 424,882

692,232 754,716 740,911 815,157 781,968 762,009 92,050 (6,259) 62,400 (1,357) 30,400 87,741

- (16,886) - - - (28,583) - - - 625 2,540 2,215

135,511 139,710 194,415 264,806 213,903 249,173 3,883,536 3,964,090 4,189,389 4,833,429 5,123,962 5,358,631

25,197 (13,243) 35,849 27,563 13,196 53,114

- - - - - (18,711) 38,842 47,354 49,430 39,744 35,201 49,287

- - - - - - - - - (625) (2,540) (2,215)

64,039 34,111 85,279 66,682 45,857 81,475 $ 3,947,575 $ 3,998,201 $ 4,274,668 $ 4,900,111 $ 5,169,819 $ 5,440,106

$ (1,449,836) $ (1,524,630) $ (1,620,997) $ (4,860,633) $ (3,436,452) $ (1,242,588) 231,146 436,934 455,819 (557,235) (162,021) 304,416

$ (1,218,690) $ (1,087,696) $ (1,165,178) $ (5,417,868) $ (3,598,473) $ (938,172)

2015 (2)2014 20172012 2013 2016

182

Table 3CITY OF CHICAGO, ILLINOISGENERAL GOVERNMENTAL REVENUES BY SOURCE (1)Last Ten Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

Revenues:$ 729,823 13.1 % $ 806,010 15.1 % $ 754,081 14.0 %

629,497 11.3 579,101 10.9 561,936 10.4 548,571 9.9 503,952 9.4 527,004 9.8 321,362 5.8 333,199 6.2 335,235 6.2 435,393 7.8 347,814 6.5 385,668 7.2 275,434 4.9 205,026 3.8 227,772 4.2 552,709 9.9 487,909 9.1 486,526 9.0 262,734 4.7 250,982 4.7 259,325 4.8

Total Taxes .................... 3,755,523 67.4 3,513,993 65.7 3,537,547 65.6 796,911 14.2 753,269 14.1 815,879 15.2 329,643 5.9 306,095 5.8 295,765 5.5 114,707 2.1 100,458 1.9 96,240 1.8 274,443 4.9 267,891 5.0 272,667 5.1 90,176 1.6 31,520 0.6 103,725 1.9

144,161 2.6 124,557 2.4 113,565 2.1 79,279 1.3 238,126 4.5 149,902 2.8

Total Revenues ............. $ 5,584,843 100.0 % $ 5,335,909 100.0 % $ 5,385,290 100.0 %

Revenues:$ 869,841 14.0 % $ 1,294,063 18.6 % $ 1,212,566 17.3 %

562,697 9.0 557,992 8.0 604,409 8.6 703,234 11.3 713,557 10.3 716,170 10.2 384,978 6.2 449,744 6.5 476,329 6.8 456,397 7.3 413,673 6.0 388,236 5.6 466,432 7.5 542,896 7.8 497,965 7.1 353,413 5.7 516,886 7.4 512,529 7.3 369,405 5.9 395,889 5.7 424,882 6.1

Total Taxes .................... 4,166,397 66.9 4,884,700 70.3 4,833,086 69.0 764,846 12.3 745,603 10.8 705,765 10.1 382,758 6.2 376,895 5.4 381,402 5.5 129,035 2.1 132,873 1.9 136,116 1.9 387,160 6.2 337,769 4.9 363,854 5.2 (26,895) (0.4) 30,400 0.4 87,740 1.3 147,927 2.4 221,965 3.2 240,827 3.4 264,806 4.3 213,865 3.1 249,173 3.6

Total Revenues ............. $ 6,216,034 100.0 % $ 6,944,070 100.0 % $ 6,997,963 100.0 %

NOTE:

(1) Includes General, Special Revenue, Debt Service and Capital Project Funds.

2008 2009 2010

2016 2017Percent Percentof Total of Total

Investment Income ..........Charges for Services .......Miscellaneous ..................

Federal/State Grants .......Internal Service ................Licenses and Permits ......Fines ................................

State Income Tax .............

Special Area Tax .............

of Total

Other Taxes .....................

Property Tax ....................Utility Tax .........................Sales Tax .........................Transportation Tax ...........

2015

Fines ................................Investment Income ..........Charges for Services .......Miscellaneous ..................

Percent

Transaction Tax ...............

Transaction Tax ...............Special Area Tax .............Other Taxes .....................

Federal/State Grants .......Internal Service ................Licenses and Permits ......

Sales Tax .........................Transportation Tax ...........State Income Tax .............

Percent Percent

Property Tax ....................Utility Tax .........................

Percentof Total of Total of Total

183

2013

$ 888,531 15.2 % $ 941,398 16.2 % $ 866,149 15.5 % $ 929,841 15.4 %564,236 9.6 548,682 9.4 547,651 9.8 570,469 9.4 563,156 9.6 594,290 10.2 623,942 11.2 658,799 10.9 331,441 5.7 373,544 6.5 381,080 6.8 406,624 6.7 344,674 5.9 391,285 6.7 436,740 7.8 404,050 6.7 250,486 4.3 281,957 4.9 344,493 6.2 379,256 6.3 552,894 9.4 370,454 6.3 332,040 5.9 331,380 5.5 269,258 4.5 294,280 5.0 298,951 5.4 323,946 5.4

3,764,676 64.2 3,795,890 65.2 3,831,046 68.6 4,004,365 66.3 976,051 16.7 877,864 15.1 708,702 12.7 812,175 13.3 321,138 5.5 319,285 5.5 324,601 5.8 335,762 5.5 102,702 1.8 117,568 2.1 123,633 2.2 122,143 2.0 283,822 4.8 306,510 5.3 329,460 5.9 353,517 5.8 73,921 1.3 90,885 1.6 (19,111) (0.3) 69,650 1.2

160,649 2.7 170,724 2.9 161,415 2.9 172,928 2.9 173,768 3.0 135,511 2.3 122,710 2.2 179,939 3.0

$ 5,856,727 100.0 % $ 5,814,237 100.0 % $ 5,582,456 100.0 % $ 6,050,479 100.0 %

201420122011 of TotalPercent

of Total of TotalPercent PercentPercent

of Total

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Milli

ons

REVENUE SOURCES

Other

Internal Service Earnings

Federal/State Grants

Taxes

$

184

Table 4CITY OF CHICAGO, ILLINOISGENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1)Last Ten Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

2008 2009 2010


1,892,152$ 27.7 % 1,913,711$ 30.5 % 1,909,728$ 30.1 %1,804,925 26.4 1,663,990 26.5 1,786,450 28.2

413,690 6.0 430,915 6.9 435,432 6.9382,628 5.6 300,131 4.8 232,426 3.7334,684 4.9 261,948 4.2 297,339 4.7184,597 2.7 177,812 2.8 153,877 2.4117,664 1.7 107,604 1.7 104,297 1.614,483 0.2 7,676 0.2 30,000 0.5

661,464 9.7 619,273 9.9 628,910 9.9Debt Service:

656,805 9.6 434,905 6.9 389,928 6.2Interest and Other Fiscal

Charges ............................... 376,297 5.5 351,430 5.6 366,035 5.8

6,839,389$ 100.0 % 6,269,395$ 100.0 % 6,334,422$ 100.0 %

Debt Service as a Percentage of16.7 % 13.6 % 12.6 %

2015 2016 2017


2,111,709$ 28.6 % 2,265,213$ 30.5 % 2,333,673$ 31.8 %2,063,897 27.9 2,046,396 27.6 1,993,226 27.1

479,581 6.5 810,497 10.9 931,618 12.7249,078 3.3 248,029 3.3 242,225 3.3475,482 6.4 402,477 5.4 378,822 5.2119,048 1.6 116,416 1.6 123,135 1.795,049 1.3 94,030 1.3 103,073 1.46,726 0.1 4,086 0.1 744 0.0

425,050 5.8 286,018 3.9 275,392 3.7Debt Service:

513,806 7.0 660,019 8.9 353,945 4.8Interest and Other Fiscal

Charges ............................... 850,243 11.5 483,468 6.5 609,594 8.3

7,389,669$ 100.0 % 7,416,649$ 100.0 % 7,345,447$ 100.0 %

Debt Service as a Percentage of20.1 % 16.7 % 14.1 %

NOTES:(1) Includes General, Special Revenue, Debt Service and Capital Project Funds.(2) Non Capital Expenditures include all expenditures except Capital Expenditures included in Capital Outlay with Transportation.

Streets and Sanitation ............Transportation ........................

Principal Retirement ...............

Total Expenditures ....................

Non Capital Expenditures (2) .....

Health .....................................Cultural and Recreational .......Other ......................................

Capital Outlay ...........................

of Total of Total of Total

Public Safety ..........................General Government ..............Employee Pensions ................

Principal Retirement ...............

Total Expenditures ....................

Non Capital Expenditures (2) .....

Percent Percent Percent

Streets and Sanitation ............Transportation ........................Health .....................................Cultural and Recreational .......Other ......................................

Capital Outlay ...........................

Public Safety ..........................General Government ..............Employee Pensions ................

of TotalPercent Percent Percentof Total of Total

185

2011 2012 2013 2014

1,984,312$ 30.0 % 2,075,959$ 31.7 % 2,034,896$ 32.1 % 2,066,979$ 28.8 %2,057,524 31.1 1,806,541 27.5 1,834,558 29.0 2,043,557 28.5

481,407 7.3 458,951 7.0 444,748 7.0 483,493 6.7236,591 3.6 228,100 3.6 241,787 3.8 269,393 3.8507,589 7.7 514,303 7.8 443,199 7.0 518,501 7.2148,449 2.2 127,567 1.9 126,599 2.0 128,769 1.890,905 1.4 102,384 1.6 97,487 1.6 93,525 1.426,211 0.3 11,725 0.1 7,681 0.1 5,410 0.0

470,213 7.1 435,600 6.6 340,481 5.4 395,216 5.5

188,608 2.8 340,754 5.2 297,152 4.7 599,395 8.4

429,822 6.5 461,962 7.0 464,587 7.3 568,156 7.9

6,621,631$ 100.0 % 6,563,846$ 100.0 % 6,333,175$ 100.0 % 7,172,394$ 100.0 %

10.3 % 13.7 % 13.1 % 17.9 %

of Totalof Total of Total of TotalPercent Percent Percent Percent

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,5008,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Milli

ons

EXPENDITURES BY FUNCTION

Public Safety

General Government

Other

Debt Service

Streets and Sanitation

Capital Outlay

$

186

Table 4ACITY OF CHICAGO, ILLINOISCHANGES IN FUND BALANCES - GOVERNMENTAL FUNDSLast Ten Fiscal Years Ended December 31, 2017(Amounts are in Thousands of Dollars)Modified Accrual Basis of Accounting

2008 2009 2010 2011

Excess of revenues over (1,254,546)$ (933,486)$ (949,132)$ (764,904)$

Other Financing Sources (Uses):

Issuance of Debt,795,432$ 1,001,302$ 1,434,390$ 1,212,326$

Payment to Refunded Bond (186,421) (213,435) (412,184) (476,787)

- - - - - - - -

293,448 2,253,459 647,407 572,211 (293,448) (2,253,459) (647,407) (571,210)

Total other financing sources 609,011 787,867 1,022,206 736,540

(645,535)$ (145,619)$ 73,074$ (28,364)$

Transfers out .................................................

(uses) ....................................................Net change in fund balances .........................

(under) expenditures .............................

including premium/discount ..................

Escrow Agent ........................................

Transfers in ...................................................

Issuance of line of credit ...............................Proceeds from sale of assets ........................

187

2012 2013 2014 2015 2016 2017

(749,609)$ (750,719)$ (1,121,915)$ (1,173,635)$ (472,579)$ (347,484)$

758,557$ 235,367$ 1,021,812$ 1,093,939$ 554,638$ 1,936,133$

(268,397) - (302,862) - (496,150) (971,766) - 144,673 - 239,131 337,140 77,203 - - - - - 15,225

178,750 160,322 652,586 229,609 375,790 589,738 (178,750) (160,322) (652,586) (228,984) (373,250) (587,523)

490,160 380,040 718,950 1,333,695 398,168 1,059,010 (259,449)$ (370,679)$ (402,965)$ 160,060$ (74,411)$ 711,526$

188

Table 5CITY OF CHICAGO, ILLINOISFUND BALANCES - GOVERNMENTAL FUNDSLast Ten Fiscal Years Ended December 31, 2017(Amounts Are in Thousands of Dollars)(Modified Accrual Basis of Accounting)

General Fund:$ 48,217 $ 52,048 $ 54,390 $ -

226 2,658 81,151 - 48,443 54,706 135,541 -

General Fund Balance: (2)$ - $ - $ - $ 24,055

- - - 143,549 - - - 167,929 - - - 335,533

Other Governmental Funds:$ 461,830 $ 1,418,399 $ 1,419,714 $ -

Unreserved, Reported in:Special Revenue Funds ....................... 959,424 (409,796) (349,517) - Capital Projects Funds ......................... 372,063 321,251 534,013 - Debt Service Funds .............................. (551,137) - - - Permanent Fund (1) ............................. 660,333 422,319 138,724 -

1,902,513 1,752,173 1,742,934 -

$ 1,950,956 $ 1,806,879 $ 1,878,475 $ -

Other Governmental Fund Balance: (2)$ - $ - $ - $ -

- - - 2,317,734 - - - 961,246 - - - 2,550 - - - (1,761,077) - - - 1,520,453

$ - $ - $ - $ 1,855,986

NOTE:(1) This balance represents the Reserve Fund, Unreserved, Designated for Future Appropriations balance.(2) Beginning with 2011, GASB Statement No. 54 was implemented which changed the way fund balance is presented.

All periods after 2011 will be presented in the same format.

2008

Total General Fund ......................................

Reserved ..................................................

Total All Other Governmental Funds ...........

Total Governmental Funds ..........................

Reserved ..................................................

20112009 2010

Nonspendable ..........................................

Unreserved ...............................................

Assigned ..................................................Unassigned ..............................................

Total Fund Balance ......................................

Total Fund Balance ......................................

Total Governmental Funds ..........................

Assigned ..................................................

Nonspendable ..........................................Restricted .................................................Committed ................................................

Unassigned ..............................................

189

$ - $ - $ - $ - $ - $ - - - - - - - - - - - - -

$ 20,885 $ 24,788 $ 24,498 $ 23,828 $ 23,730 $ 25,945 177,000 108,424 65,223 98,377 92,115 106,900 33,417 33,845 51,557 93,027 153,737 155,516

231,302 167,057 141,278 215,232 269,582 288,361

$ - $ - $ - $ - $ - $ -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

$ - $ - $ - $ - $ - $ -

$ - $ - $ - $ - $ - $ 769,064 2,332,911 2,262,028 1,829,431 1,878,692 1,755,914 1,903,494

882,127 699,073 696,067 677,821 709,769 790,489 - - - - - -

(1,852,973) (1,901,567) (1,843,440) (1,789,019) (1,827,047) (2,129,450) 1,362,065 1,059,534 682,058 767,494 638,636 1,333,597

$ 1,593,367 $ 1,226,591 $ 823,336 $ 982,726 $ 908,218 $ 1,621,958

2013 20172012 2014 2015 2016

190

Table 6CITY OF CHICAGO, ILLINOISGENERAL FUNDSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCESFive Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

Revenues:$ 456,869 $ 473,496 $ 437,780 $ 434,409 $ 438,979

583,681 620,299 665,793 674,515 500,360 308,899 278,031 336,959 413,673 388,236 749,742 803,961 935,658 1,080,423 1,109,348

1,871 2,335 1,845 1,869 2,514 929,429 998,028 1,088,600 1,077,723 1,120,022

Total Revenues .................................... 3,030,491 3,176,150 3,466,635 3,682,612 3,559,459


1,953,572 2,020,072 2,061,540 2,195,201 2,228,705885,268 929,918 1,064,470 993,682 929,471267,852 270,899 298,817 263,503 277,643

2,382 10,369 8,275 20,822 19,039Total Expenditures ................................ 3,109,074 3,231,258 3,433,102 3,473,208 3,454,858

Revenues Over (Under) Expenditures . (78,583) (55,108) 33,533 209,404 104,601

Other Financing Sources (Uses):Issuance of Debt, Net of Original

- - 19,300 - - 21,018 39,700 34,551 14,998 180,227

(10,583) (10,081) (12,760) (169,955) (268,263)Total Other Financing Sources (Uses) . 10,435 29,619 41,091 (154,957) (88,036)

Revenues and Other Financing SourcesOver (Under) Expenditures andOther Financing Uses ........................... (68,148) (25,489) 74,624 54,447 16,565

231,302 167,057 141,278 215,232 269,5823,903 (290) (670) (97) 2,214

$ 167,057 $ 141,278 $ 215,232 $ 269,582 $ 288,361

NOTES:Includes Internal Service, Licenses and Permits, Fines, Investment Income, Charges for Services andMiscellaneous Revenues.Includes Health, Streets and Sanitation, Transportation, Cultural and Recreational and Other Expenditures.

2013 2014 2015 2016 2017

Utility Tax ................................................

Fund Balance - End of Year .........................

(1)

(2)

Sales Tax ................................................State Income Tax ....................................Other Taxes ............................................

Other (2) ..................................................Debt Service ..............................................

Transfers Out ............................................

Fund Balance - Beginning of Year ...............Change in Inventory .....................................

Transfers In ...............................................

Federal/State Grants ...............................Other Revenues (1) ................................

Public Safety ...........................................General Government ..............................

Discount/Including Premium ...................

191

Table 7CITY OF CHICAGO, ILLINOISSPECIAL REVENUE FUNDSSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESFive Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

Revenues:$ 316,958 $ 357,457 $ 360,132 $ 747,957 $ 740,019

68,458 74,641 102,593 101,260 143,103 - - - - 65,013 - - - - 86,047

127,841 126,019 119,438 - - 589,422 624,676 626,821 791,824 767,893 706,831 809,840 763,001 743,734 703,251 96,263 162,996 143,029 194,061 300,082

Total Revenues ...................................... 1,905,773 2,155,629 2,115,014 2,578,836 2,805,408


81,324 46,907 50,169 70,012 59,825 949,290 1,113,639 999,427 1,052,714 1,062,405 444,748 483,493 479,581 810,497 931,618 648,901 744,699 646,566 601,535 570,356

7,187 9,863 45,445 47,760 48,174 115 4,332 71 9,267 5,265

Total Expenditures .................................. 2,131,565 2,402,933 2,221,259 2,591,785 2,677,643

Revenues Over (Under) Expenditures ... (225,792) (247,304) (106,245) (12,949) 127,765


125,063 17,768 28,657 30,746 19,977 - - 75,994 - - - - - - -

91,022 184,033 32,257 123,941 218,333 (59,631) (64,863) (70,322) (81,412) (225,102)

Total Other Financing Sources (Uses) ... 156,454 136,938 66,586 73,275 13,208

Revenues and Other Financing SourcesOver (Under) Expenditures andOther Financing Uses ............................. (69,338) (110,366) (39,659) 60,326 140,973

404,548 335,210 224,844 185,185 245,511

$ 335,210 $ 224,844 $ 185,185 $ 245,511 $ 386,484

NOTES:

Includes Internal Service, Fines, Investment Income, Charges for Services and Miscellaneous Revenues.Includes Health, Streets and Sanitation, Transportation, Cultural and Recreational and Other Expenditures.Source: Major and Nonmajor Special Revenue Funds for years ended December 31, 2013-2017.

2013 (3) 2014 (3) 2015 (3) 2016 (3) 2017 (3)

Other Taxes ..............................................

State Sales Tax .........................................

Federal/State Grants .................................Other Revenues (1) ..................................

Public Safety .............................................

Property Tax .............................................Utility Tax ..................................................Sales Tax (Local) ......................................

State Income Tax ......................................

Debt Service ................................................

Discount/Including Premium .....................

Payment to Refunded Bond Escrow Agent .Transfers In .................................................

General Government ................................Employee Pensions ..................................Other (2) ....................................................

Capital Outlay ..............................................

Line of Credit ...............................................

(1)(2)(3)

Transfers Out ..............................................

Fund Balance - Beginning of Year .................


192

Table 8CITY OF CHICAGO, ILLINOISDEBT SERVICE FUNDSSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESFive Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

Revenues:$ 549,191 $ 572,384 $ 509,709 $ 546,106 $ 472,547

22,324 22,332 22,324 22,323 22,327- - - - 50,037

40,261 38,500 37,441 39,042 14,71317,400 12,569 11,749 33,168 34,46411,888 36,443 22,460 23,920 19,276

Total Revenues ...................................... 641,064 682,228 603,683 664,559 613,364

Expenditures:759,242 1,152,850 1,355,703 1,113,398 939,235

Total Expenditures .................................. 759,242 1,152,850 1,355,703 1,113,398 939,235

Revenues Over (Under) Expenditures ... (118,178) (470,622) (752,020) (448,839) (325,871)


4 371,207 1,096,759 861,032 1,319,635- - - - 77,203 - (300,600) - (496,150) (971,766)

46,352 411,413 57,351 223,151 174,050(89,157) (268,872) (124,488) (106,838) (94,153)

Total Other Financing Sources (Uses) ... (42,801) 213,148 1,029,622 481,195 504,969

Revenues and OtherFinancing SourcesOver (Under) Expenditures andOther Financing Uses ............................. (160,979) (257,474) 277,602 32,356 179,098

470,459 309,480 52,006 329,608 361,964

$ 309,480 $ 52,006 $ 329,608 $ 361,964 $ 541,062

NOTES:Includes Investment Income and Miscellaneous Revenues.Source: Major (Bond, Note Redemption and Interest and Sales Tax Securitization Corporation) and Nonmajor DebtService Fund Special Taxing Areas for years ended December 31, 2013-2017.

2013 (2) 2014 (2) 2015 (2) 2016 (2) 2017 (2)

Other Revenues (1) ..................................

Sales Tax (Local) ......................................

Debt Service ................................................

Discount/Including Premium .....................

Payment to Refunded Bond Escrow Agent .

Property Tax .............................................Utility Tax ..................................................

State Sales Tax .........................................Other Taxes ..............................................

Line of Credit ...............................................

(1)(2)

Transfers In .................................................Transfers Out ..............................................

Fund Balance - Beginning of Year .................


193

Table 9CITY OF CHICAGO, ILLINOISCAPITAL PROJECTS FUNDSSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESFive Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

Revenues:$ 5,128 $ 36,472 $ 30,702 $ 18,063 $ 19,732

Total Revenues .................................... 5,128 36,472 30,702 18,063 19,732

Expenditures:- - - - 1,350- - - - 45,143

333,294 385,353 379,605 238,258 227,218Total Expenditures ................................ 333,294 385,353 379,605 238,258 273,711

Revenues Over (Under) Expenditures . (328,166) (348,881) (348,903) (220,195) (253,979)


110,300 630,575 62,360 - 596,521 144,673 - 50,000 - -

- - - - 15,2251,930 17,440 105,450 13,700 17,128(951) (308,770) (21,414) (15,045) (5)

Total Other Financing Sources (Uses) . 255,952 339,245 196,396 (1,345) 628,869

Revenues and OtherFinancing Sources Over(Under) Expenditures andOther Financing Uses ........................... (72,214) (9,636) (152,507) (221,540) 374,890

487,058 414,844 405,208 252,701 31,161

$ 414,844 $ 405,208 $ 252,701 $ 31,161 $ 406,051

NOTES:Includes Investment Income, Charges for Services and Miscellaneous Revenues.Source: Major (Community Development and Improvement Projects) and Nonmajor (Capital Projects Funds)for years ended December 31, 2013-2017.

Issuance Line of Credit ............................

2013 (2) 2014 (2) 2015 (2) 2016 (2) 2017 (2)

Other Revenues (1) ................................

General Government ..............................Public Safety ..........................................

Proceeds from Sale of Assets ..................

Capital Outlay ...........................................

Discount/Including Premium ..................

Transfers In ..............................................

(2)

Transfers Out ...........................................

Fund Balance - Beginning of Year ...............

Fund Balance - End of Year .........................

(1)

194

Table 10CITY OF CHICAGO, ILLINOISPROPERTY TAX LEVIES BY FUND (1)Five Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

PercentChange

$ 74,231 $ 97,061 30.76 %411,807 412,139 0.08138,146 136,680 (1.06)122,066 123,239 0.9681,518 81,363 (0.19)

Laborers' and Retirement Board Employees'10,486 10,934 4.27

$ 838,254 $ 861,416 2.76

NOTES:

(1) See Table 11 - PROPERTY LEVIES, COLLECTIONS AND ESTIMATED ALLOWANCE FOR UNCOLLECTIBLE TAXES 2008 - 2017. Does not include the levy for the School Building and Improvement Fund which is accounted for in an agency fund.(2) Includes Corporate, Chicago Public Library Maintenance and Operations, Chicago Public Library Building and Sites and City Relief Funds.(3) For information regarding the City’s unfunded (assets in excess of) pension benefit obligations under its Pensions Plans, see the individual Pension Plans Financial Statements.(4) Estimated; actual was not available from the Cook County Clerk’s Office at time of publication.(5) Source: Cook County Clerk’s Office.

Municipal Employees’ Annuity and Benefit (3) ...................Firemen’s Annuity and Benefit (3) ......................................

Total ...................................................................................

Annuity and Benefit (3) ....................................................

Note Redemption and Interest (2) ......................................Bond Redemption and Interest ..........................................Policemen’s Annuity and Benefit (3) ..................................

2013 2014

195

Percent Percent PercentChange Change Change

$ 97,708 0.67 % $ 80,359 (17.76) % $ 80,420 0.08 %411,730 (0.10) 430,584 4.58 438,620 1.87361,987 164.84 455,355 25.79 490,685 7.76124,706 1.19 124,706 0.00 124,706 - 179,424 120.52 194,825 8.58 212,622 9.13

11,070 1.24 11,070 0.00 11,070 -

$ 1,186,625 37.75 $ 1,296,899 9.29 $ 1,358,123 (4) 4.72

2015 2016 2017

196

Table 11CITY OF CHICAGO, ILLINOISPROPERTY LEVIES, COLLECTIONS ANDESTIMATED ALLOWANCE FOR UNCOLLECTIBLE TAXESLast Ten Years Ended December 31, 2017(Amounts are in Thousands of Dollars)

2008 ........ $ 834,152 $ 776,522 93.09 % $ 31,942 $ 808,464 96.92 % $ 25,688 $ - 2009 ........ 834,109 700,579 83.99 99,463 800,042 95.92 34,067 - 2010 ........ 834,089 790,141 94.73 14,576 804,717 96.48 29,372 - 2011 ........ 833,948 800,582 96.00 3,443 804,025 96.41 29,923 - 2012 ........ 834,636 804,245 96.36 9,129 813,374 97.45 21,262 - 2013 ........ 838,254 807,985 96.39 11,876 819,861 97.81 18,393 - 2014 ........ 861,416 832,042 96.59 14,757 846,799 98.30 14,354 263 2015 ........ 1,186,625 1,156,428 97.46 18,446 1,174,874 99.01 11,516 235 2016 ........ 1,296,899 1,271,653 98.05 - 1,271,653 98.05 24,489 757 2017 ........ 1,358,123 (4) - N/A - - N/A 54,325 1,303,798

$ 1,305,053

NOTES:

(1) Taxes for each year become due and payable in the following year. For example, taxes for the 2017 tax levy become due and payable in 2018.(2) Does not include levy for Special Service Areas and Tax Increment Projects.(3) Does not include the levy for the School Building and Improvement Fund which is accounted for in an agency fund.(4) Estimate; actual was not available from Cook County Clerk's Office at time of publication.

Total Tax EstimatedCollections Percen- Allowance Net

for tage in tage OutstandingLevy

Collected Within Total CollectionsFiscal Year to Date

Levy Taxesof

forPercen-

ReceivableSubsequentFiscal of

Total Net Outstanding Taxes Receivable ........................................................................................................................

TaxesYear (1) Year (2), (3) Amount Levy Amount

Tax UncollectibleYears

197

Table 12CITY OF CHICAGO, ILLINOISTOP TEN ESTIMATED EQUALIZED ASSESSED VALUATION (EAV) (1)Current Year and Nine Years Ago (2)(Amounts are in Thousands of Dollars)

Property Rank Rank

$ 406,464 1 0.55 % $ 514,662 1 0.70 %252,409 2 0.34 374,456 2 0.51250,676 3 0.34226,358 4 0.31 231,069 6 0.31212,135 5 0.29 293,604 4 0.40205,993 6 0.28204,322 7 0.28 297,653 3 0.40203,125 8 0.27 250,261 5 0.34196,745 9 0.27191,736 10 0.26 205,913 10 0.28

208,906 9 0.28211,813 8 0.29216,217 7 0.29

Totals ....................................................... $ 2,349,963 3.19 % $ 2,804,554 3.80 %

NOTES:

(1) Source: Cook County Treasurer’s Office, Cook County Assessor’s Office.(2) 2017 information not available at time of publication.(3) AON Building formerly known as AMOCO Building.(4) Willis Tower formerly known as Sears Tower.(5) Blue Cross Blue Shield formerly known as Health Care Service Corporation Blue Cross.(6) Franklin Center formerly known as AT&T Corporate Center 1.

Percentage Percentageof of

Total 2007 TotalEAV EAV EAV EAV2016

Willis Tower (4) ................................................AON Building (3) ..............................................

Water Tower Place ..........................................

Leo Burnett Building .........................................

Blue Cross Blue Shield Tower (5) ....................

Prudential Plaza ...............................................300 N. LaSalle ..................................................

Three First National Plaza ................................

Chase Plaza .....................................................Franklin Center (6) ...........................................

Citadel Center ..................................................

Citicorp Plaza ...................................................

UBS Tower ......................................................

198

Table 13CITY OF CHICAGO, ILLINOISASSESSED AND ESTIMATED FAIR MARKET VALUE OF ALL TAXABLE PROPERTYLast Ten Years(Amounts are in Thousands of Dollars)

TaxYear

2007 18,937,256 1,768,927 12,239,086 678,196 33,623,4652008 19,339,574 1,602,768 12,359,537 693,239 33,995,1182009 18,311,981 1,812,850 10,720,244 592,364 31,437,4392010 18,074,177 1,416,863 10,467,682 606,941 30,565,6632011 17,932,671 1,116,175 10,456,103 588,672 30,093,6212012 15,529,678 1,208,620 10,233,051 498,310 27,469,6592013 15,410,659 1,236,401 10,172,186 494,714 27,313,9602014 15,390,835 1,298,776 10,124,569 512,390 27,326,5702015 17,296,324 1,532,714 11,269,605 592,903 30,691,5462016 17,191,167 1,598,117 11,369,258 603,849 30,762,391

NOTES:

(1) Source: Cook County Assessor’s Office. Excludes portion of City in DuPage County. (2) Residential, 6 units and under. (3) Residential, 7 units and over and mixed use. (4) Industrial/Commercial. (5) Vacant, not-for-profit and industrial/commercial incentive classes. Includes railroad and farm property. (6) Source: Illinois Department of Revenue. (7) Source: Cook County Clerk’s Office. Excludes portion of City in DuPage County and net of exemptions. Calculations also include assessment of pollution control facilities. (8) Source: The Civic Federation. Excludes railroad property and portion of City in DuPage County.

2017 information not available at time of publication.

Total

Assessed Values (1)

Class 2 (2) Class 3 (3) Class 5 (4) Other (5)

199

TotalState Direct

Equalization TaxFactor (6) Rate

2.8439 73,645,316 1.044 320,503,503 22.982.9786 80,977,543 1.030 310,888,609 26.053.3701 84,685,258 0.986 280,288,730 30.213.3000 82,087,170 1.020 231,986,397 35.382.9706 75,122,914 1.110 222,856,064 33.712.8056 65,250,387 1.279 206,915,723 31.532.6621 62,363,876 1.344 236,695,475 26.352.7253 64,908,057 1.327 255,639,792 25.392.6685 70,963,289 1.672 278,027,604 25.522.8032 74,016,506 1.752 293,121,793 25.25

$

Total Estimated Assessed to TotalEstimated Fair

Value (7) Value (8) Market ValueFair Market

Ratio ofTotal Total Equalized

EqualizedAssessed

05

10152025303540455055606570758085

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

EQUALIZED ASSESSED VALUE

200

Table 14CITY OF CHICAGO, ILLINOISPROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTSPer $100 OF EQUALIZED ASSESSED VALUATIONLast Ten Years

Tax Year

2007 $ 1.044 $ - $ 0.091 $ 2.583 $ 0.1592008 1.030 0.117 - 2.472 0.1562009 0.986 0.112 - 2.366 0.1502010 1.016 1.116 - 2.581 0.1512011 1.110 0.119 - 2.875 0.1652012 1.279 0.146 - 3.422 0.1902013 1.344 0.152 - 3.671 0.1992014 1.327 0.146 - 3.660 0.1932015 1.672 0.134 - 3.455 0.1772016 (1) 1.752 0.128 - 3.726 0.169

NOTE:(1) 2017 information not available from the Cook County Clerk’s Office at time of publication.

Table 15CITY OF CHICAGO, ILLINOISPROPERTY TAX RATES - CITY OF CHICAGOPer $100 OF EQUALIZED ASSESSED VALUATIONLast Ten Years(Amounts for Tax Extension are in Thousands of Dollars)

TaxYear

2007 $ 749,351 $ 0.550055 $ 0.039514 $ 0.1915482008 834,152 0.508488 0.094354 0.1724262009 834,109 0.478955 0.091851 0.1675522010 834,089 0.494109 0.094665 0.1707342011 833,948 0.542475 0.103443 0.1913812012 834,636 0.623916 0.119254 0.2204592013 838,254 0.653302 0.125978 0.2214942014 861,416 0.659187 0.125228 0.2105542015 1,186,625 0.602426 0.115391 0.510054 2016 (1) 1,296,899 0.575897 0.114343 0.615146

NOTES:(1) 2017 information not available from the Cook County Clerk's Office at time of publication.(2) Does not include the levy for the School Building and Improvement Fund which is accounted for in an agency fund.

Chicago PublicBond, Note

Chicago CommunitySchool Board CollegeFinance of District

Education No. 508

Note Redemption Annuity andLibrary Bond, Policemen’s

Chicago

and Interest BenefitExtension (2)Total City Tax Redemption

and Interest

City

SchoolBuilding andImprovement

Fund Authority

201

$ 0.355 $ 0.263 $ 0.053 $ 0.446 $ 4.9940.323 0.252 0.051 0.415 4.8160.309 0.261 0.049 0.394 4.6270.319 0.274 0.051 0.423 5.9310.346 0.320 0.058 0.462 5.4550.395 0.370 0.063 0.531 6.3960.420 0.417 0.069 0.560 6.8320.415 0.430 0.069 0.568 6.8080.382 0.426 0.069 0.552 6.8670.368 0.406 0.063 0.533 7.145

$ 0.174302 $ 0.088581 $ – $ 1.0440.162182 0.080787 0.011763 1.0300.153704 0.078184 0.015754 0.9860.161435 0.078352 0.016705 1.0160.169036 0.088014 0.015651 1.1100.197892 0.100313 0.017166 1.2790.195713 0.130700 0.016813 1.3440.189848 0.125339 0.016844 1.327

0.175716 0.252815 0.015598 1.6720.168467 0.263192 0.014955 1.752

ForestChicago Preserve

ParkCounty

MetropolitanWater

District Total

Laborers’ and Municipal Retirement Board

Reclamation District of CookCook CountyDistrict

Annuity and Annuity and Annuity andEmployees’

Benefit Benefit Benefit Total

Firemen’s Employees’

202

Table 16CITY OF CHICAGO, ILLINOISRATIO OF GENERAL NET BONDED DEBT TO EQUALIZED ASSESSED VALUEAND NET BONDED DEBT PER CAPITA Last Ten Years(Amounts are in Thousands of Dollars Except Where Noted)

TaxYear Population (1)

2008 2,896,016 80,977,543 5,687,447 259,097 362,140 - 2009 2,896,016 84,685,258 6,051,947 230,263 439,670 - 2010 2,695,598 82,087,170 6,536,596 268,526 574,755 - 2011 2,695,598 75,122,914 6,997,975 198,132 554,015 - 2012 2,695,598 65,250,387 7,244,917 166,460 528,305 - 2013 2,695,598 62,363,876 7,159,396 270,188 501,490 - 2014 2,695,598 64,908,057 7,798,956 - 473,290 129,002 2015 2,695,598 70,963,289 8,562,720 239,131 434,525 87,809 2016 2,695,598 74,016,506 8,551,473 124,263 392,440 91,787 2017 2,695,598 N/A (6) 9,197,357 77,203 335,065 51,707

NOTES:

(1) Source: U.S. Census Bureau.(2) Source: Cook County Clerk’s Office.(3) Beginning in 2014, the City will present Unamortized Premiums and Capital Appreciation Bonds Accreted Interest amounts applicable to General Obligation Bonds only and Other General Obligation Debt.(4) Gross Bonded Debt includes bonds, and notes obligations that are noncurrent.(5) Amounts are in dollars.(6) N/A means not available at time of publication.(7) The balance outstanding at December 31, 2017 listed above for each bond series excluded amounts payable January 1, 2018, if applicable.

GeneralEqualized

UnamortizedPremiums (3)

OtherG. O. Debt

CertificatesAssessedValue (2)

G. O.Bonds (7)

Obligationand Other (7)

203

- 6,308,684 10,080 6,298,604 7.78 2,174.92 - 6,721,880 50,431 6,671,449 7.88 2,303.66 - 7,379,877 58,822 7,321,055 8.92 2,715.93 - 7,750,122 249,355 7,500,767 9.98 2,782.60 - 7,939,682 105,582 7,834,100 12.01 2,906.26 - 7,931,074 16,298 7,914,776 12.69 2,936.19

290,179 8,691,427 99,725 8,591,702 13.24 3,187.31 297,645 9,621,830 232,442 9,389,388 13.23 3,483.23 307,236 9,467,199 285,375 9,181,824 12.41 3,406.23 315,863 9,977,195 249,110 9,728,085 N/A (6) 3,608.88

Net BondedDebt

Ratio of Net BondedDebt to Equalized Assessed Value

Net Bonded DebtPer Capita (5)

Total Gross-Net of Premiums

& Accretions-Bonded Debt (4)

forDebt Service

Less ReserveAccreted

Interest (3)

204

Table 17CITY OF CHICAGO, ILLINOISRATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION DEBTTO TOTAL GOVERNMENTAL EXPENDITURESLast Ten Years (Amounts are in Thousands of Dollars)

YearEndedDecember 31,

$ 429,066 $ 302,105 $ 731,171 $ 6,839,389 10.7 %380,946 298,057 679,003 6,269,395 10.8336,378 319,423 655,801 6,334,422 10.4129,303 369,880 499,183 6,621,207 7.5305,879 475,906 781,785 6,563,846 11.9218,918 399,794 618,712 6,333,175 9.8446,749 442,705 889,454 7,172,394 12.4326,556 501,721 828,277 7,389,669 11.2574,949 424,489 999,438 7,416,649 13.5276,565 564,748 841,313 7,345,447 11.5

(1) The City issued bonds backed by a property tax levy on behalf of Community College District No. 508. The annual debt service related to the bonds was (in thousands) $6,891 in 2007 and approximately $35,170 since 2008.(2) This includes G. O. Bonds, G. O. Notes, G. O. Certificates, G. O. Commercial Paper (CP), G. O. Line of Credit, (LOC), Other G. O. Debt, and City Colleges of Chicago Bonds. For FY 2017 the principal payments for LOC were $124.2 million.(3) For FY 2017, interest payments exclude Michael Reese Loan.

2013 ....................

2017 ....................

Financing

andOther

2014 ....................

Charges (3)Principal (2)

2009 ....................2010 ....................

Interest

2016 ....................2015 ....................

GovernmentalExpenditures (1)

Ratio ofDebt Service

Expenditures to

2011 ....................2012 ....................

GeneralObligation

ExpendituresDebt ServiceExpenditures

Governmental

2008 ....................

205

Table 18CITY OF CHICAGO, ILLINOISCOMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2017(Amounts are in Thousands of Dollars)

$ 9,609,625 * $ 9,609,625 * 100.00 % $ 9,609,6258,179,138 100.00 8,179,138

821,000 100.00 821,000315,560 100.00 315,560

1,595,187 3,092,047 51.59 1,595,048150,960 51.59 77,873

Metropolitan Water Reclamation2,697,667 52.59 1,418,606

15,256,372 12,407,225

$ 24,865,997 $ 22,016,850

NOTES:

(2) Cook County Clerk's Office.* The balance outstanding at December 31, 2017 listed above for each bond series excluded amounts payable January 1, 2018, if applicable.

Direct Debt

City Colleges of Chicago ................................................

Overlapping Long-term Debt ................

Cook County ...................................................................

Net Direct andTotal Overlapping Debt ............................

term debt amount provided by each entity is comprised solely of the tax-levy supported obligations. Table 18 does not include non-property tax levy backed debt issued by the listed entities.

Percentageof

Debt (2)

Overlapping Long-term

have the authority to issue bonds and levy taxes on real property within the City of Chicago. The net direct long-

Board of Education .........................................................City of Chicago G. O. Bonds and Other G. O. Debt .......

City Net Net Direct

(1) Table 18 includes the governmental entities that operate as separate, independent units of government and

District of Greater Chicago ........................................

Chicago Park District ......................................................

DebtApplicable

of Chicago BondedDebt (1)

Cook County Forest Preserve District ............................

206

Table 19CITY OF CHICAGO, ILLINOISDEBT STATISTICSLast Ten Years(Amounts are in Thousands of Dollars Except Where Noted)

Direct Debt $ 6,126,295 $ 6,866,270 $ 7,328,452 $ 7,628,222Overlapping Debt 7,529,359 8,539,070 9,158,243 9,877,084

Total Debt $ 13,655,654 $ 15,405,340 $ 16,486,695 $ 17,505,306

EqualizedAssessed Valuation (1) $ 80,977,543 $ 84,685,258 $ 82,087,170 $ 75,122,914

Direct Debt Burden (2) 8.32% 8.48% 8.65% 9.29%Total Debt Burden (2) 18.54% 19.02% 19.47% 21.33%

Estimated Fair Market Value (FMV) (5) $ 310,888,609 $ 280,288,730 $ 231,986,397 $ 222,856,064% of Direct Debt to FMV 1.97% 2.45% 3.16% 3.42%% of Total Direct Debt to FMV 4.39% 5.50% 7.11% 7.85%

Population (3) 2,896,016 2,896,016 2,695,598 2,695,598Direct Debt Per Capita (4) $ 2,115.42 $ 2,370.94 $ 2,718.67 $ 2,829.88Total Debt Per Capita (4) 4,715.32 5,319.49 6,116.15 6,494.03

NOTES:

(1) Source: Cook County Clerk’s Office. Excludes portion of City in DuPage County and exemptions.(2) Due to the one-year lag in the Equalized Assessed Valuation, debt burden measures are computed utilizing the prior year’s Assessed Valuation. The Assessed Valuation for 2007 is $73,645,316.(3) Source: U.S. Census Bureau.(4) Amounts are in dollars.(5) Source: The Civic Federation.(6) N/A means not available at time of publication.

20112008 2009 2010

207

$ 7,939,682 $ 7,670,298 $ 8,339,626 $ 9,041,892 $ 8,943,914 $ 9,609,62510,384,421 10,338,490 10,113,429 10,397,181 11,232,989 12,407,225

$ 18,324,103 $ 18,008,788 $ 18,453,055 $ 19,439,073 $ 20,176,903 $ 22,016,850

$ 65,250,387 $ 62,363,876 $ 64,908,057 $ 70,963,289 $ 74,016,506 $ N/A (6)10.57% 11.76% 13.37% 13.93% 12.60% 12.98%24.39% 27.60% 29.59% 29.95% 28.43% 29.75%

$ 206,915,723 $ 236,695,475 $ 255,639,792 $ 278,027,604 $ 293,121,793 N/A (6)3.84% 3.24% 3.26% 3.25% 3.05% N/A (6)8.86% 7.61% 7.22% 6.99% 6.88% N/A (6)

2,695,598 2,695,598 2,695,598 2,695,598 2,695,598 2,695,598$ 2,945.43 $ 2,845.49 $ 3,093.79 $ 3,354.32 $ 3,317.97 $ 3,564.93

6,797.79 6,680.81 6,845.63 7,211.41 7,485.13 8,167.71

20162012 20142013 20172015

208

Table 20CITY OF CHICAGO, ILLINOISREVENUE BOND COVERAGELast Ten Years Ended December 31, 2017(Amounts are in Thousands of Dollars Except Where Noted)

Year Coverage

2008 ..... $ 1,602,668 $ 913,499 $ 47,067 $ 736,236 $ 219,482 $ 438,553 $ 658,035 1.122009 ..... 1,516,939 887,676 41,021 670,284 216,841 369,379 586,220 1.142010 ..... 1,768,225 911,935 10,370 866,660 220,124 379,185 599,309 1.452011 ..... 1,767,722 937,233 61,202 891,691 166,825 306,916 473,741 1.882012 ..... 1,935,020 967,517 83,050 1,050,553 209,298 479,277 688,575 1.532013 ..... 2,020,371 969,551 211,531 1,262,351 277,225 494,226 771,451 1.642014 * ..... 2,306,308 1,042,605 280,251 1,543,954 290,340 569,475 859,815 1.802015 * ..... 2,391,485 1,054,949 344,579 1,681,115 336,960 570,523 907,483 1.852016 * ..... 2,531,472 1,112,868 555,170 1,973,774 417,727 579,779 997,506 1.982017 * ..... 2,622,659 1,215,210 649,204 2,056,653 455,434 610,727 1,066,161 1.93

* Beginning in 2014, revenues are net of provision for doubtful accounts.

Year Coverage

2008 $ 557,596 $ 296,469 $ 261,127 $ 176,221 $ 58,292 $ 234,513 1.112009 495,588 185,947 309,641 37,000 28,740 65,740 4.712010 474,390 229,266 245,124 36,535 28,431 64,966 3.772011 544,415 266,916 277,499 44,290 31,796 76,086 3.652012 487,495 361,783 125,712 43,025 29,136 72,161 1.742013 427,287 334,414 92,873 51,194 27,721 78,915 1.182014 410,018 567,079 (157,061) 69,912 30,963 100,875 (1.56)2015 366,264 349,066 17,198 37,070 24,089 61,159 0.282016 493,399 376,482 116,917 58,090 18,561 76,651 1.532017 514,992 437,313 77,679 60,825 16,161 76,986 1.01

..........................

Operating AvailableFunds (3)

Revenues (1)

Other

.......................... .......................... .......................... ..........................

..........................

OperatingExpense (2)

.......................... .......................... ..........................

Interest Total

Available

Tax Increment Financing Funds

Gross

GrossTotalPrincipal

Proprietary Funds

Available Debt Service Requirements

Revenues (1) Expense (2) Servicefor Debt

Interest

for DebtDebt (4) Principal

Debt Service Requirements

..........................

Net Revenue

Net Revenue

209

Table 20 - ConcludedCITY OF CHICAGO, ILLINOISREVENUE BOND COVERAGELast Ten Years Ended December 31, 2017(Amounts are in Thousands of Dollars Except Where Noted)

Year Coverage

2008 $ 548,571 $ 9,135 $ 16,385 $ 25,520 21.502009 503,952 425 13,630 14,055 35.862010 527,004 445 6,300 6,745 78.132011 563,156 465 18,481 18,946 29.722012 594,290 11,300 29,509 40,809 14.562013 623,942 11,875 27,515 39,390 15.842014 658,798 12,485 27,292 39,777 16.562015 703,234 13,125 25,678 38,803 18.122016 713,557 13,795 25,610 39,405 18.112017 716,170 12,260 15,051 27,311 26.22

Year Coverage

2008 $ 57,472 $ 1,210 $ 9,976 $ 11,186 5.142009 55,625 5,000 10,618 15,618 3.562010 55,209 5,270 10,332 15,602 3.542011 52,567 5,550 9,996 15,546 3.382012 53,421 5,850 9,840 15,690 3.402013 52,405 6,165 9,453 15,618 3.362014 53,772 5,915 6,642 12,557 4.282015 49,048 5,045 9,356 14,401 3.412016 51,626 4,085 10,207 14,292 3.612017 51,581 4,295 10,805 15,100 3.42

NOTES:(1) Total revenues include nonoperating revenues except for grants.(2) Total operating expenses excluding depreciation and amortization.(3) Other Available Funds is calculated only for the Water and Sewer funds, and is calculated as net current unrestricted assets as of December 31 of the prior year.(4) Net Revenue Available for Debt Service will not tie to the revenues from Exhibit 4 since not all revenue is available for debt service.

............................................. .............................................

............................................. .............................................

.............................................

............................................. ............................................. .............................................

............................................. .............................................

Interest

Motor Fuel Tax Funds

Sales Tax Funds

Availablefor Debt

Debt Service Requirements

Debt Service RequirementsAvailable

Service (4) Principal

for Debt

Total

.............................................

Principal

............................................. .............................................

Interest Total

............................................. .............................................

Service (4)

............................................. ............................................. .............................................

.............................................

.............................................

Net Revenue

Net Revenue

210

Table 21CITY OF CHICAGO, ILLINOISRATIO OF OUTSTANDING DEBT BY TYPELast Ten Years Ended December 31, 2017(Amounts are in Thousands of Dollars Except Where Noted)

Year

2008 $ 6,308,684 $ 204,811 $ 552,345 $ 5,500 $ 207,065 $ 1,464,838 $ - 2009 6,721,880 179,871 559,417 3,500 169,282 1,424,319 - 2010 7,379,877 156,881 553,702 1,200 177,011 1,711,615 - 2011 7,750,122 125,201 770,312 - 166,787 1,677,851 - 2012 7,939,682 106,241 753,162 - 163,012 1,988,655 - 2013 7,931,074 80,127 735,122 - 171,673 1,954,020 248,750 2014 8,272,246 69,995 725,395 - 116,858 2,381,770 248,750 2015 9,236,376 60,660 735,882 - - 2,391,395 248,750 2016 9,068,176 33,520 748,748 - - 2,468,397 248,750 2017 9,609,625 27,925 993,664 - - 2,401,005 248,750

NOTES:

(1) See Table 13 for Estimated Fair Market Value(2) Amounts in Dollars(3) 2017 information not available at time of publication.(4) The balance outstanding at December 31, 2017 listed above for each bond series excluded amounts payable January 1, 2018, if applicable.

Governmental Funds

ChicagoO'Hare

Motor FuelRevenue

Net Tax Increment Sales AirportGeneral Allocation Tax Installment Customer

Internationaland

Obligation Bonds and Securitization Purchase Capital Water

Revenue Facility ChargeRevenue BondsDebt (4) Notes Corporation (4) Agreement Leases Bonds

211

Proprietary Fund Revenue Bonds

$ - $ 4,912,635 $ 725,675 $ 1,239,404 $ 902,904 $ 16,523,861 5.16 $ 5,705.72- 5,092,010 709,200 1,246,190 878,875 16,984,544 5.46 5,864.80- 5,647,115 816,110 1,465,495 1,100,800 19,009,806 6.78 7,052.17- 6,481,960 797,769 1,439,185 1,084,224 20,293,411 8.75 7,528.35- 6,270,770 750,706 1,383,215 1,334,918 20,690,361 9.28 7,675.61- 6,563,780 683,780 1,470,343 1,333,984 21,172,653 10.23 7,854.53- 6,406,710 682,271 1,506,325 1,602,175 22,012,495 9.30 8,166.09- 6,586,490 631,245 1,506,325 1,686,178 23,083,301 9.03 8,563.33

12,098 6,404,030 595,630 1,781,605 1,692,820 23,053,774 7.86 8,552.38274,140 7,564,355 558,635 1,755,835 1,861,381 25,295,315 N/A (3) 9,383.93

PerCapita (2)

Chicago International Chicago Bonded

Revenue Primary Transmission Total

ChicagoO'Hare Ratio of

Airport Midway Wastewater Debt toO'HareEstimatedInternational Passenger Airport

Revenue Bonds Revenue BondsFacility Charge RevenueAirport

Bonds Bonds Government Value (1)Fair Market

O'HareInternational

AirportOtherDebt

Chicago

212

Table 22CITY OF CHICAGO, ILLINOISDEBT SERVICE REQUIREMENTS FOR GENERAL LONG-TERM DEBT (1)December 31, 2017

YearEnded

Dec. 31,

2018 . . . $ 194,096,972 $ 455,975,347 $ 4,515,000 $ 10,864,473 $ - $ 29,451,3602019 . . . 276,480,064 477,065,594 4,979,654 10,641,573 3,000,000 28,123,3152020 . . . 355,650,282 535,759,323 5,365,292 10,399,336 3,150,000 27,973,3152021 . . . 352,333,604 518,433,051 5,777,526 10,139,952 27,045,000 27,815,8152022 . . . 358,799,764 507,029,282 6,217,119 9,862,366 33,705,000 26,752,0452023 . . . 352,409,683 490,363,923 6,689,882 9,565,427 34,990,000 25,468,9412024 . . . 341,065,192 473,525,300 7,181,683 9,247,692 36,345,000 24,114,3052025 . . . 339,273,971 457,555,750 7,713,447 8,908,440 37,780,000 22,679,3412026 . . . 356,276,163 441,528,156 8,281,159 8,546,100 39,295,000 21,159,6772027 . . . 371,129,720 417,927,982 8,870,874 8,159,127 40,895,000 19,560,5642028 . . . 382,824,806 406,157,793 9,493,716 7,745,909 42,570,000 17,882,7352029 . . . 404,144,515 384,781,949 10,068,483 7,306,021 44,330,000 16,122,3152030 . . . 424,712,520 367,133,994 10,768,919 6,840,648 24,825,000 14,274,8852031 . . . 495,303,596 343,104,217 11,510,892 6,345,270 25,660,000 13,437,7862032 . . . 485,748,762 298,808,387 12,290,844 5,818,170 26,540,000 12,559,7022033 . . . 511,441,194 271,380,169 13,610,315 5,257,833 27,490,000 11,607,7122034 . . . 544,327,377 241,274,997 14,500,951 4,637,693 28,470,000 10,621,6462035 . . . 579,007,607 206,743,229 15,449,513 3,979,629 29,490,000 9,600,4262036 . . . 610,476,559 173,788,971 16,452,886 3,281,209 30,545,000 8,542,6202037 . . . 426,912,925 137,971,380 17,518,085 2,540,193 31,635,000 7,446,9712038 . . . 276,556,380 112,678,984 3,728,555 1,754,019 32,765,000 6,312,2242039 . . . 288,695,000 65,971,977 4,111,747 1,629,858 33,940,000 5,136,9432040 . . . 288,935,000 48,249,307 4,522,303 1,492,937 35,150,000 3,919,5152041 . . . 305,905,000 31,256,080 4,962,113 1,342,344 36,410,000 2,658,6842042 . . . 101,745,000 13,254,033 5,433,199 1,177,106 37,710,000 1,352,6582043 . . . 108,170,000 6,829,854 5,615,766 996,180 - - 2044 . . . - - 6,129,697 809,175 - - 2045 . . . - 6,680,086 605,056 - - 2046 . . . - 7,269,481 382,610 - - 2047 . . . 4,220,295 140,536 - -

$ 9,532,421,656 $ 7,884,549,029 $ 249,929,482 $ 160,416,882 $ 743,735,000 $ 394,575,500

NOTE:

(1) The amounts listed above for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2018, have been excluded from this schedule because funds for their payment have been provided in the debt service funds.

(2) Amounts above exclude the Line of Credit.

Motor Fuel Tax

Interest

Sales Tax SecuritizationCorporation Revenue BondsGeneral Obligation Debt (2)

Principal Interest PrincipalRevenue Bonds

Principal Interest

213

$ 5,710,000 $ 1,232,911 $ 204,321,972 $ 497,524,091 . . . . . . . 20186,020,000 959,730 290,479,718 516,790,212 . . . . . . . 20194,135,000 706,375 368,300,574 574,838,349 . . . . . . . 20204,375,000 493,625 389,531,130 556,882,443 . . . . . . . 20217,685,000 192,125 406,406,883 543,835,818 . . . . . . . 2022

- - 394,089,565 525,398,291 . . . . . . . 2023- - 384,591,875 506,887,297 . . . . . . . 2024- - 384,767,418 489,143,531 . . . . . . . 2025- - 403,852,322 471,233,933 . . . . . . . 2026- - 420,895,594 445,647,673 . . . . . . . 2027- - 434,888,522 431,786,437 . . . . . . . 2028- - 458,542,998 408,210,285 . . . . . . . 2029- - 460,306,439 388,249,527 . . . . . . . 2030- - 532,474,488 362,887,273 . . . . . . . 2031- - 524,579,606 317,186,259 . . . . . . . 2032- - 552,541,509 288,245,714 . . . . . . . 2033- - 587,298,328 256,534,336 . . . . . . . 2034- - 623,947,120 220,323,284 . . . . . . . 2035- - 657,474,445 185,612,800 . . . . . . . 2036- - 476,066,010 147,958,544 . . . . . . . 2037- - 313,049,935 120,745,227 . . . . . . . 2038- - 326,746,747 72,738,778 . . . . . . . 2039- - 328,607,303 53,661,759 . . . . . . . 2040- - 347,277,113 35,257,108 . . . . . . . 2041- - 144,888,199 15,783,797 . . . . . . . 2042- - 113,785,766 7,826,034 . . . . . . . 2043- - 6,129,697 809,175 . . . . . . . 2044- - 6,680,086 605,056 . . . . . . . 2045- - 7,269,481 382,610 . . . . . . . 2046- - 4,220,295 140,536 . . . . . . . 2047

$ 27,925,000 $ 3,584,766 $ 10,554,011,138 $ 8,443,126,177

Year

Principal InterestEnded

December 31,

Tax Increment and SpecialTotals

Principal InterestService Area Bonds

214

Table 23CITY OF CHICAGO, ILLINOISDEBT SERVICE REQUIREMENTS FOR GENERAL OBLIGATION DEBT (1)December 31, 2017

YearEnded

Dec. 31,

2018 . . . $ 137,711,972 $ 435,061,910 $ 54,135,000 $ 18,207,537 $ 2,250,000 $ 2,705,9002019 . . . 205,913,700 459,165,908 57,330,000 15,433,725 13,236,364 2,465,9612020 . . . 278,293,918 521,275,729 64,120,000 12,487,198 13,236,364 1,996,3962021 . . . 282,547,240 507,685,270 56,550,000 9,221,601 13,236,364 1,526,1802022 . . . 289,698,400 499,694,726 55,865,000 6,278,266 13,236,364 1,056,2902023 . . . 303,598,319 486,406,878 35,575,000 3,370,648 13,236,364 586,3972024 . . . 317,642,012 471,809,519 16,805,000 1,598,951 6,618,180 116,8302025 . . . 333,348,971 456,802,313 5,925,000 753,437 - - 2026 . . . 349,806,163 441,075,993 6,470,000 452,163 - - 2027 . . . 370,454,720 417,807,828 675,000 120,154 - - 2028 . . . 382,109,806 406,073,846 715,000 83,947 - - 2029 . . . 403,294,515 384,736,355 850,000 45,594 - - 2030 . . . 424,712,520 367,133,994 - - - - 2031 . . . 495,303,596 343,104,217 - - - - 2032 . . . 485,748,762 298,808,387 - - - - 2033 . . . 511,441,194 271,380,169 - - - - 2034 . . . 544,327,377 241,274,997 - - - - 2035 . . . 579,007,607 206,743,229 - - - - 2036 . . . 610,476,559 173,788,971 - - - 2037 . . . 426,912,925 137,971,380 - - - - 2038 . . . 276,556,380 112,678,984 - - - - 2039 . . . 288,695,000 65,971,977 - - - - 2040 . . . 288,935,000 48,249,307 - - - - 2041 . . . 305,905,000 31,256,080 - - - - 2042 . . . 101,745,000 13,254,033 - - - - 2043 . . . 108,170,000 6,829,854 - - - -

$ 9,102,356,656 $ 7,806,041,854 $ 355,015,000 $ 68,053,221 $ 75,050,000 $ 10,453,954

NOTE:(1) The amounts listed above for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2018, have been excluded from this schedule because funds for their payment have been provided in the debt service funds.

(2) Alternative Revenue Bonds include General Obligation Bonds (Emergency Telephone System), Series 1999 and Series 2004, and General Obligation Bonds (Modern Schools Across Chicago Program) Series 2007A-K and 2010A/B.

(3) Amounts above exclude the Line of Credit.

General Obligation Bonds (3) DebtPrincipal Interest

Other General ObligationAlternative Revenue Bonds (2)

InterestPrincipal Principal Interest

215

$ 194,096,972 $ 455,975,347 $ 650,072,319276,480,064 477,065,594 753,545,658355,650,282 535,759,323 891,409,605352,333,604 518,433,051 870,766,655358,799,764 507,029,282 865,829,046352,409,683 490,363,923 842,773,606341,065,192 473,525,300 814,590,492339,273,971 457,555,750 796,829,721356,276,163 441,528,156 797,804,319371,129,720 417,927,982 789,057,702382,824,806 406,157,793 788,982,599404,144,515 384,781,949 788,926,464424,712,520 367,133,994 791,846,514495,303,596 343,104,217 838,407,813485,748,762 298,808,387 784,557,149511,441,194 271,380,169 782,821,363544,327,377 241,274,997 785,602,374579,007,607 206,743,229 785,750,836610,476,559 173,788,971 784,265,530426,912,925 137,971,380 564,884,305276,556,380 112,678,984 389,235,364288,695,000 65,971,977 354,666,977288,935,000 48,249,307 337,184,307305,905,000 31,256,080 337,161,080101,745,000 13,254,033 114,999,033108,170,000 6,829,854 114,999,854

$ 9,532,421,656 $ 7,884,549,029 $ 17,416,970,685

TotalsTotalPrincipal Interest

216

Table 24CITY OF CHICAGO, ILLINOISDEBT SERVICE REQUIREMENTS FOR PROPRIETARY FUNDS (1)December 31, 2017

YearEnded

December 31,

2018 ....................... $ 88,916,070 $ 124,589,105 $ 56,201,436 $ 89,117,5822019 ....................... 90,619,561 117,280,205 58,520,160 86,096,7392020 ....................... 89,459,930 113,578,883 56,469,154 90,773,9352021 ....................... 91,172,832 104,320,232 56,420,126 90,860,7862022 ....................... 95,196,807 100,200,159 58,494,803 88,838,1602023 ....................... 98,836,267 95,860,828 60,826,586 86,551,8932024 ....................... 103,658,405 91,284,749 63,256,964 84,160,7722025 ....................... 112,725,658 86,624,477 76,151,399 71,367,6812026 ....................... 118,406,818 81,333,958 60,522,621 86,912,3612027 ....................... 124,130,054 75,640,035 62,756,247 84,681,6992028 ....................... 117,428,608 69,600,498 65,042,061 82,304,7332029 ....................... 122,517,588 64,034,614 72,502,778 59,660,7482030 ....................... 123,922,106 58,197,818 75,957,064 56,097,8542031 ....................... 95,422,271 52,329,949 79,032,045 52,312,1042032 ....................... 87,941,244 47,745,602 82,545,302 48,286,3942033 ....................... 91,153,562 43,561,306 84,745,233 44,060,1752034 ....................... 94,978,106 39,230,597 88,298,373 39,647,3412035 ....................... 93,539,922 34,724,526 91,451,411 35,027,3762036 ....................... 93,062,362 30,125,927 90,596,053 30,149,0812037 ....................... 87,271,338 25,448,073 83,875,745 25,296,3552038 ....................... 88,720,000 20,885,825 87,825,000 20,471,9562039 ....................... 77,395,000 15,946,126 82,835,000 15,662,1302040 ....................... 81,035,000 11,415,897 65,230,000 11,426,1622041 ....................... 43,530,000 6,674,750 38,275,000 8,599,8632042 ....................... 45,705,000 4,498,250 40,180,000 6,672,2692043 ....................... 21,590,000 2,213,000 24,685,000 5,067,3252044 ....................... 22,670,000 1,133,500 25,945,000 3,801,5752045 ....................... - - 7,720,000 2,959,9502046 ....................... - - 8,105,000 2,564,3252047 ....................... - - 8,510,000 2,148,9502048 ....................... - - 8,935,000 1,757,5002049 ....................... - - 9,295,000 1,392,9002050 ....................... - - 9,665,000 1,013,7002051 ....................... - - 10,055,000 619,3002052 ....................... - - 10,455,000 209,1002053 ....................... - - - - 2054 ....................... - - - -

$ 2,401,004,509 $ 1,518,478,889 $ 1,861,380,561 $ 1,416,570,774

NOTE:

1) For variable rate debt, interest has been calculated at the rate in effect or effective rate of a Swap Agreement, if applicable, as of December 31, 2017. Amounts above exclude Commercial Paper and Line of Credit issues as the timing of payments is not certain.

Water Wastewater Transmission

Principal Interest Principal InterestRevenue Bonds Revenue Bonds

217

$ 326,115,000 $ 497,871,919 $ 471,232,506 $ 711,578,606 $ 1,182,811,112 . . . . . . . 2018329,175,000 485,113,375 478,314,721 688,490,319 1,166,805,040 . . . . . . . 2019320,490,000 469,682,418 466,419,084 674,035,236 1,140,454,320 . . . . . . . 2020287,415,000 454,754,878 435,007,958 649,935,896 1,084,943,854 . . . . . . . 2021309,420,000 439,876,706 463,111,610 628,915,025 1,092,026,635 . . . . . . . 2022308,885,000 424,375,972 468,547,853 606,788,693 1,075,336,546 . . . . . . . 2023351,910,000 407,822,304 518,825,369 583,267,825 1,102,093,194 . . . . . . . 2024374,700,382 389,641,412 563,577,439 547,633,570 1,111,211,009 . . . . . . . 2025388,039,303 370,584,965 566,968,742 538,831,284 1,105,800,026 . . . . . . . 2026407,208,224 350,732,170 594,094,525 511,053,904 1,105,148,429 . . . . . . . 2027416,374,106 330,363,145 598,844,775 482,268,376 1,081,113,151 . . . . . . . 2028411,274,988 309,787,518 606,295,354 433,482,880 1,039,778,234 . . . . . . . 2029432,940,870 288,627,427 632,820,040 402,923,099 1,035,743,139 . . . . . . . 2030453,556,752 266,312,145 628,011,068 370,954,198 998,965,266 . . . . . . . 2031471,772,634 243,138,821 642,259,180 339,170,817 981,429,997 . . . . . . . 2032499,269,496 219,290,450 675,168,291 306,911,931 982,080,222 . . . . . . . 2033515,971,358 195,500,046 699,247,837 274,377,984 973,625,821 . . . . . . . 2034557,263,220 171,021,569 742,254,553 240,773,471 983,028,024 . . . . . . . 2035322,796,063 150,967,088 506,454,478 211,242,096 717,696,574 . . . . . . . 2036343,257,925 132,537,030 514,405,008 183,281,458 697,686,466 . . . . . . . 2037360,320,768 113,207,786 536,865,768 154,565,567 691,431,335 . . . . . . . 2038377,963,610 93,064,566 538,193,610 124,672,822 662,866,432 . . . . . . . 2039286,367,433 74,738,541 432,632,433 97,580,600 530,213,033 . . . . . . . 2040244,451,256 60,620,758 326,256,256 75,895,371 402,151,627 . . . . . . . 2041160,276,059 51,015,964 246,161,059 62,186,483 308,347,542 . . . . . . . 2042168,284,882 43,878,391 214,559,882 51,158,716 265,718,598 . . . . . . . 2043158,319,685 36,941,760 206,934,685 41,876,835 248,811,520 . . . . . . . 204498,550,468 31,492,622 106,270,468 34,452,572 140,723,040 . . . . . . . 2045

107,606,035 26,469,164 115,711,035 29,033,489 144,744,524 . . . . . . . 204669,951,622 22,183,910 78,461,622 24,332,860 102,794,482 . . . . . . . 204773,283,189 18,739,551 82,218,189 20,497,051 102,715,240 . . . . . . . 204876,851,716 15,090,723 86,146,716 16,483,623 102,630,339 . . . . . . . 204980,580,244 11,274,352 90,245,244 12,288,052 102,533,296 . . . . . . . 205084,489,751 7,267,993 94,544,751 7,887,293 102,432,044 . . . . . . . 205188,595,240 3,067,163 99,050,240 3,276,263 102,326,503 . . . . . . . 205211,601,708 689,593 11,601,708 689,593 12,291,301 . . . . . . . 205312,049,157 234,460 12,049,157 234,460 12,283,617 . . . . . . . 2054

$ 10,287,378,144 $ 7,207,978,655 $ 14,549,763,214 $ 10,143,028,318 $ 24,692,791,532

Chicago-O'Hare InternationalAirport and Chicago Midway YearInternational Airport Bonds EndedTotals

Total December 31, Principal Interest Principal Interest

218

Table 25CITY OF CHICAGO, ILLINOISLONG-TERM DEBTDecember 31, 2017

Long-term debt is comprised of the following issues at December 31, 2017 (dollars in thousands):

General Long-term Debt:General Obligation Debt:

General Obligation Bonds (1):$ 153,280 $ 16,135

* 213,110 70,215308,964 124,103254,293 7,403580,338 13,715206,700 161,280103,140 8,250157,990 21,260202,500 139,410176,890 28,670

* 64,665 24,785489,455 52,400441,090 56,235300,350 143,515222,790 174,005114,695 62,811

35,753 25,813582,435 254,360589,590 472,660

39,110 32,020330,890 226,125200,000 153,700473,705 406,375611,017 583,647793,275 785,040213,555 213,555299,340 299,340416,345 416,345594,850 594,850883,420 880,685

1,088,390 1,088,390500,000 500,000

1,160,260 1,160,260$ 12,802,185 $ 9,197,357

* Secured by alternate revenues.

Project and Refunding Series 2014 A and B - 4.0% to 6.314% ................................................

Refunding Series of 1993 B - 4.25% to 5.125% .......................................................................Emergency Telephone System Refunding Series 1999 - 4.5% to 5.5% ..................................City Colleges of Chicago Capital Improvement Project Series 1999 - 6.0% ............................

Outstanding atOriginal December 31,Principal 2017

Project Series 2000 A - 4.85% to 6.75% ..................................................................................Project and Refunding Series 2001 A - 4.0% to 5.65% ............................................................

Project Series 2003 C - 2.0% to 5.25% ....................................................................................Emergency Telephone System Series 2004 - 3.0% to 6.09% ..................................................Project and Refunding Series 2004 - 1.92% to 5.5% ...............................................................Refunding Series 2005 A - 2.5% to 5.0% .................................................................................

Neighborhoods Alive 21 Program Series 2002 B - 5.0% to 5.5% .............................................Neighborhoods Alive 21 Program Series 2003 - 2.0% to 5.25% ..............................................Project and Refunding Series 2003 A - 4.625% to 5.25% ........................................................Project and Refunding Series 2003 B - 5.0% to 5.5% ..............................................................

Total General Obligation Bonds ............................................................................................

Project and Refunding Series 2007 A and B - 3.75% to 5.462% ..............................................

Project Series 2010 C-1 - 7.781% ............................................................................................

City Colleges of Chicago Capital Improvement Project Series 2007 - 4.0% to 5.0% ...............Project and Refunding Series 2007 C and D - 4.0% to 5.44% .................................................Project and Refunding Series 2007 E through G - 5.5% ..........................................................Project and Refunding Series 2008 A and B - 3.0% to 5.765% ................................................Project and Refunding Series 2008 C through E - 1.0% to 6.05% ...........................................Project and Refunding Series 2009 A through D - 4.0% to 6.257% .........................................Project Series 2010 B - 7.517% ...............................................................................................

Project and Refunding Series 2017 A and B - 5.625% to 7.045% ............................................

Project and Refunding Series 2005 B - 3.5% to 5.0% ..............................................................

Project and Refunding Series 2006 A - 3.5% to 5.0% ..............................................................

General Obligation Series 2015 A and B - 5.0% to 7.75% .......................................................

Project Series 2011 A and B - 4.625% to 6.034% ....................................................................Project Series 2012 A through C - 4.0% to 5.432% ..................................................................

Project and Refunding Series 2005 D - 5.5% ...........................................................................Direct Access Bonds, Series 2005 - 2.85% to 4.5% .................................................................Direct Access Bonds, Series 2006 - 3.5% to 4.4% ...................................................................

Refunding Series 2015C - 5.0% ...............................................................................................

219

Table 25 - ContinuedCITY OF CHICAGO, ILLINOISLONG-TERM DEBTDecember 31, 2017

Line of Credit:$ 77,203 $ 77,203

77,203 77,203

12,879,388 9,274,560

General Obligation Certificates and Other Obligations (1):** $ 28,800 $ 2,250* 356,005 152,190* 150,115 107,825** 91,000 72,800

625,920 335,065

Total General Obligation Debt ...................................................................... 13,505,308 9,609,625

Tax Increment Allocation Bonds and Notes (1):16,800 4,38533,410 23,54050,210 27,925

Motor Fuel Tax Revenue Bonds (1):62,900 61,930

105,895 91,26096,739 96,739

265,534 249,929

Sales Tax Securitization Corporation Bonds (1):743,735 743,735743,735 743,735

Total General Long-term Debt ................................................................. $ 14,564,787 $ 10,631,214

* Secured by alternate revenues.** General Obligation Certificates and other obligations without property tax levy.NOTE: (1) The balance outstanding at December 31, 2017 listed above for each bond series excluded amounts payable

January 1, 2018, if applicable.

Proprietary Fund Revenue Bonds:Water Revenue Bonds:

$ 277,911 $ 2,466100,000 100,000156,819 7,156

81,500 80,690500,000 339,725549,915 99,400313,580 300,355399,445 383,700367,925 351,125

Motor Fuel Tax Revenue Bonds - Series 2008 A - 4.0% to 5.0% .............................................

Sales Tax Securitization Corporation Bonds - Series 2017ABC - 2.596% to 5.0% .................. Total Sales Tax Securitization Corporation Bonds ................................................................

Series 2010 - 2nd Lien - 2.0% to 6.742% .................................................................................Series 2012 - 2nd Lien - 4.0% to 5.0% .....................................................................................

Total General Obligation Certificates and Other Obligations .................................................

Goose Island Redevelopment Tax Increment - Series 2000 - 7.45% ......................................Pilsen Redevelopment Project - Series 2014 A and B - 0.95% to 5.0% ..................................

Series 2008 - 2nd Lien - 4.0% to 5.25% ...................................................................................

Series 1997 - Sr Lien 3.9% to 5.25% ........................................................................................

Motor Fuel Tax Revenue Bonds - Series 2013 - 2.0% to 5.0% ................................................

Series 2000 - 2nd Lien - 5.0% ..................................................................................................

Series 2004 - 2nd Lien - 2.0% to 5.0% .....................................................................................

Motor Fuel Tax Revenue Bonds - Riverwalk TIFIA Loan - 3.33% ............................................

Building Acquisition Certificates (Limited Tax) Series 1997 - 4.4% to 5.4% .............................Modern Schools Across Chicago Program - Series 2007 A through K - 3.6% to 5.0% ............Modern Schools Across Chicago Program - Series 2010 A and B - 3.0% to 5.364% ..............

Total Motor Fuel Tax Revenue Bonds ...................................................................................

Series 2014 - 2nd Lien - 3.0% to 5.0% .....................................................................................

Total General Obligation Bonds and Notes ......................................................................

Total Tax Increment Allocation Bonds and Notes .................................................................

MRL Financing LLC Promissory Note - 5.0% to 7.5% ..............................................................


Line of Credit - Variable Rate (4.225% at December 31, 2017) ............................................... Total Line of Credit ................................................................................................................

Series 2000 - Sr Lien 4.375% to 5.875% ..................................................................................Series 2001 - 2nd Lien 3.0% to 5.75% .....................................................................................

220



Proprietary Fund Revenue Bonds - ContinuedWater Revenue Bonds - Concluded:

59,595 59,595199,355 192,820235,260 235,260

3,605 1,1232,643 1,2606,000 4,3549,077 6,3831,528 1,2071,502 1,1876,092 4,8146,542 5,602

39,422 34,49215,000 13,15247,000 42,15815,058 13,76862,179 59,79540,450 40,45019,584 18,968

3,516,987 2,401,005

Chicago-O’Hare International Airport Bonds:Chicago-O’Hare International Airport Revenue Bonds:

29,360 29,360238,990 56,605300,000 240,600

74,245 30,000992,625 889,880716,075 172,850722,495 473,830501,785 441,660396,120 388,895

1,620,180 1,591,885327,200 327,200

1,014,335 991,8451,117,250 1,117,250

534,420 534,420278,075 278,075

8,863,155 7,564,355

Chicago-O’Hare International Airport Customer Facility Charge Revenue Bonds:248,750 248,750248,750 248,750

Series of 2015 C and D - Senior Lien - 3.625% to 5.0% ..........................................................

Series of 2016 D through G - Senior Lien - 2.00% to 5.25% ....................................................Refunding Series of 2016 A through C - Senior Lien - 3.0% to 5.0% .......................................

Series of 2011 A and B - 3rd Lien - 3.0% to 6.0% ....................................................................Series of 2010 A through D and F - 3rd Lien - 3.0% to 6.845% ...............................................

Refunding Series of 2012 A and B - Senior Lien - 1.0% to 5.0% .............................................

Series of 2013 C and D - Senior Lien - 3.0% to 5.5% ..............................................................Refunding Series of 2015 A and B - Senior Lien - 2.0% to 5.0% .............................................

Refunding Series of 2013 A and B - Senior Lien - 2.0% to 5.25% ...........................................

Illinois Environmental Protection Agency Loan - 0.00% ...........................................................

Illinois Environmental Protection Agency Loan - 1.93% ...........................................................Illinois Environmental Protection Agency Loan - 1.93% ...........................................................

Illinois Environmental Protection Agency Loan - 2.905% .........................................................

Series 2016 - 2nd Lien - 4.0% to 5.0% .....................................................................................

Illinois Environmental Protection Agency Loan - 1.995% .........................................................Illinois Environmental Protection Agency Loan -1.86 % ...........................................................

Series 2017 - 2nd Lien -5.0% to 5.25% ....................................................................................

Series of 2005 B - 3rd Lien - 5.25% .........................................................................................Series of 2005 C and D - 3rd Lien - Variable Rate (1.70% at December 31, 2017) ................

Series of 2004 F and G - 3rd Lien - 5.3% to 5.35% ..................................................................





Series 2017 - 2 - 2nd Lien -5.0% .............................................................................................


Total Chicago-O’Hare International Airport Revenue Bonds .................................................

Illinois Environmental Protection Agency Loan - 1.25% ...........................................................Illinois Environmental Protection Agency Loan - 2.29% ...........................................................


Total Chicago-O’Hare International Airport Customer Facility Charge Revenue Bonds .......Series of 2013 A Senior Lien - 3.0% to 5.75% .........................................................................

Total Water Revenue Bonds .................................................................................................


Refunding Series of 2017 A through C - Senior Lien - 3.125% to 5.0% ...................................Series of 2017 D - Senior Lien - 5.0% .....................................................................................

Series of 2008 C and D - 3rd Lien - 4.0% to 4.6% ....................................................................

221


Proprietary Fund Revenue Bonds - Concluded:Chicago-O’Hare International Airport Passenger Facility Charge Revenue Bonds:

137,665 128,80046,005 27,360

452,095 402,475635,765 558,635

Chicago-O’Hare International Airport Commercial Paper Notes:102,239 102,239102,239 102,239

Chicago-O’Hare International Airport Revolving Line of Credit:6,916 6,9165,182 5,182

12,098 12,098

Chicago-O’Hare International Airport TIFIA Loan:159,803 159,803159,803 159,803

Chicago Midway International Airport Revenue Bonds:54,210 25,775

152,150 127,62563,470 61,260

333,960 308,385771,810 771,810124,710 124,710342,395 336,270

1,842,705 1,755,835

Wastewater Transmission Revenue Bonds:62,423 35,16873,100 50,925

167,635 12,255332,230 316,780275,865 258,440276,470 256,165292,405 282,770

87,080 87,080180,590 180,590215,485 215,485

1,546 87415,000 10,32817,564 14,30017,812 14,07715,000 13,16054,170 50,732

Illinois Environmental Protection Agency Loan - 1.25% ..........................................................


Illinois Environmental Protection Agency Loan - 2.5% ............................................................

Refunding Series of 2010 A through D - 2.0% to 6.395% ........................................................Refunding Series of 2011 A and B - 5.0% to 6.0% ...................................................................

Series 2004 C and D - 2nd Lien - 4.174% to 4.274% ...............................................................

Series 2014 A through B - 2nd Lien - 4.0% to 5.0% .................................................................


Series 2008 C1 through C3 - 2nd Lien - 3.886% ......................................................................


2017

Refunding Series of 2012 A and B - 2.5% to 5.0% ...................................................................

Series 2008 A - 2nd Lien - 4.0% to 5.5% ..................................................................................

Series 2014 - 2nd Lien - 3.0% to 5.0% .....................................................................................

Series 2010 A and B - 2nd Lien - 2.0% to 6.9% ......................................................................

Outstanding atOriginal December 31,Principal

Series 2001 - 2nd Lien - 3.5% to 5.5% .....................................................................................


Refunding Series 1998 A Sr Lien - 4.55% to 5.0% ...................................................................

Series 2015 - 2nd Lien - 2.591% to 6.042% .............................................................................

Series 2012 - 2nd Lien - 3.0% to 5.0% .....................................................................................

Series 2017 A - 2nd Lien - 4.00% to 5.25% ..............................................................................Series 2017 B Refunding - 2nd Lien - 5.00% ..........................................................................

Total Chicago-O’Hare International Airport TIFIA Loan ........................................................

Series 1998 C - 5.25% to 5.5% ................................................................................................

Series 2010 C - 2nd Lien - 3.782% to 7.168% .........................................................................Refunding Series 2013 A through C - 2nd Lien - .74% to 5.5% ...............................................

Refunding Series 2014C - Variable Rate (1.71% at December 31, 2017) ...............................Series 2016 A through B - 2nd Lien - 2.0% to 5.0% .................................................................

Total Chicago-O’Hare International Airport Passenger Facility Charge Revenue Bonds ......

Total Chicago Midway International Airport Revenue Bonds ................................................

Total Chicago-O’Hare International Airport Revolving Line of Credit ....................................

Series A, B and C Variable Rate (1.20% to 1.27% at December 31, 2017) ............................. Total Chicago-O’Hare International Airport Commercial Paper Notes ..................................

Revolving Line of Credit - AMT Variable Rate (2.1125% at December 31, 2017) ....................Revolving Line of Credit - Non- AMT Variable Rate (2.1125% at December 31, 2017) ...........

TIFIA Loan - 3.86% ..................................................................................................................

222

Table 25 - ConcludedCITY OF CHICAGO, ILLINOISLONG-TERM DEBTDecember 31, 2017

Proprietary Fund Revenue Bonds - Concluded:Wastewater Transmission Revenue Bonds - Concluded:

56,198 53,9504,118 4,0394,263 4,263

2,148,954 1,861,381

Total Proprietary Fund Revenue Bonds ................................................... $ 17,530,456 $ 14,664,101

Illinois Environmental Protection Agency Loan - 1.86% ..........................................................Illinois Environmental Protection Agency Loan -1.75% ........................................................... Total Wastewater Transmission Revenue Bonds ..................................................................



223

Table 26CITY OF CHICAGO, ILLINOISPOPULATION AND INCOME STATISTICSLast Ten Years

Median Number ofYear Population (1) Age (2) Households (2)

2,896,016 34.1 1,032,746 1,237,856 6.4 $ 45,328 $ 131,270,613,2482,896,016 34.5 1,037,069 1,171,841 10.0 43,727 126,634,091,6322,695,598 34.8 1,045,666 1,116,830 10.1 45,957 123,881,597,2862,695,598 33.2 1,048,222 1,120,402 9.3 45,977 123,935,509,2462,695,598 33.2 1,054,488 1,144,896 8.9 48,305 130,210,861,3902,695,598 33.5 1,062,029 1,153,725 8.3 49,071 132,275,689,4582,695,598 33.9 1,031,672 1,264,234 5.7 50,690 136,639,862,6202,695,598 34.2 1,053,229 1,273,727 5.7 53,886 145,254,993,8282,695,598 34.4 1,053,986 1,282,117 5.4 55,621 149,931,856,3582,695,598 N/A (5) N/A (5) 1,289,325 4.7 N/A (5) N/A (5)

NOTES:

(1) Source: U.S. Census Bureau.(2) Source: American Fact Finder - United States Census Bureau data estimates.

Data not available for 2017.(3) Source: Bureau of Labor Statistics 2017, Unemployment rate for Chicago-Naperville-Illinois Metropolitan Area.(4) Source: U.S. Department of Commerce, Bureau of Economic Analysis, Per Capita Personal Income for Chicago-Naperville-Illinois Metropolitan Area.(5) N/A means not available at time of publication.

Unemployment Per Capita Total

2008 ...

City

2009 ...

Employment Rate (3) Income

2011 ...

Income (4)

2013 ...

2017 ...2016 ...

2010 ...

2014 ...2015 ...

2012 ...

224

Table 27CITY OF CHICAGO, ILLINOISPRINCIPAL EMPLOYERS (NON-GOVERNMENT)Current Year and Nine Years Ago

Number Numberof of

Employer Employees Rank Employees Rank

Advocate Health Care ........................................ 19,049 1 1.48 %Northwestern Memorial Healthcare ................... 16,667 2 1.29University of Chicago ......................................... 16,583 3 1.29JPMorgan Chase & Co. ..................................... 15,701 4 1.22 8,865 1 0.81 %Amazon.com Inc. ............................................... 13,240 5 1.03United Continental Holdings Inc. (2) .................. 12,994 6 1.01 6,403 2 0.58Walgreens Boots Alliance Inc. .......................... 12,751 7 0.99Northwestern University ..................................... 10,847 8 0.84Presence Health ................................................ 10,225 9 0.79Wal-mart Stores Inc. ......................................... 10,220 10 0.79Jewel Food Stores, Inc. ..................................... 5,977 3 0.55Northern Trust ................................................... 5,084 4 0.46Accenture LLP ................................................... 4,532 5 0.41American Airlines ............................................... 3,582 6 0.33SBC/AT&T ........................................................ 3,459 7 0.32Ford Motor Company ......................................... 3,325 8 0.30CVS Corporation ................................................ 3,161 9 0.29Bonded Maintenance Company ......................... 2,955 10 0.27

NOTES:

(1) Source: Reprinted with permission from the January 15, 2018 issue of Crain’s Chicago Business. © 2018 Crain Communications Inc. All Rights Reserved.(2) United Continental Holdings Inc. formerly known as United Airlines.(3) Source: City of Chicago, Department of Revenue, Employer’s Expense Tax Returns. Prior to 2014, the source for information was the City of Chicago, Bureau of Revenue-Tax Division report, which is no longer available.

2017 (1)

Total City Total CityEmployment Employment

Percentage Percentageof of

2008 (3)

225

Table 28CITY OF CHICAGO, ILLINOISFULL TIME EQUIVALENT CITY OF CHICAGO EMPLOYEES BY FUNCTIONLast Ten Years (1)

Function 2017 2016 2015 2014 (2) 2013 (2) 2012 (2) 2011 2010 2009 2008

General3,733 3,674 3,764 3,760 3,725 3,857 4,363 4,401 4,419 5,112

22,354 21,458 21,182 21,138 21,067 21,040 22,716 22,912 22,954 23,313

Streets and2,298 2,328 2,341 2,341 2,351 2,302 2,576 2,605 3,087 3,648

1,362 1,321 1,297 1,171 932 929 980 1,022 718 819

606 613 656 713 738 904 991 1,117 1,257 1,535

Cultural and1,255 1,261 1,253 1,244 1,214 1,153 1,207 1,213 1,318 1,596

Business-type4,047 3,672 3,636 3,679 3,528 3,559 3,615 3,619 3,666 3,898

Total ................. 35,655 34,327 34,129 34,046 33,555 33,744 36,448 36,889 37,419 39,921

NOTES:

(1) Source: City of Chicago 2017 Budget Overview. Includes full time equivalent positions in grant related programs.

(2) Per Office of Budget Management restated figures.

BudgetedFull Time Equivalent

Positions

Government .......

Activities .............

Public Safety .........

Sanitation ...........

Transportation .......

Health ...................

Recreational .......

226

Table 29CITY OF CHICAGO, ILLINOISOPERATING INDICATORS BY FUNCTION/DEPARTMENTLast Ten Years

Function/Program 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

Police Physical82,663 85,493 112,996 129,166 143,618 145,390 152,740 167,355 181,254 196,621

Fire Emergency709,664 713,492 685,525 685,588 675,570 472,752 343,749 343,214 363,519 377,808

Refuse CollectionRefuse Collected

3,632 3,561 3,403 3,265 3,562 3,763 3,983 3,931 3,974 4,240

Cultural Volumes11,472 11,823 11,469 11,527 11,452 5,691 5,790 5,770 5,743 5,721

Water Average DailyConsumption (Thousands of

680,468 701,148 719,467 752,362 756,486 793,274 770,925 773,612 808,551 827,156

Notes: (1) In 2013, Office of Emergency Management and Communications implemented new system accounting for Administrative calls.(2) Beginning in 2013, Chicago Public Library utilizes new process to identify library holdings. Figures in thousands.

Table 30CITY OF CHICAGO, ILLINOISCAPITAL ASSET STATISTICS BY FUNCTIONLast Ten Years

Function 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008

25 25 25 25 25 25 26 25 25 25

104 104 104 104 104 104 104 103 103 101

Other Public Works:4,116 4,116 4,116 4,116 4,116 4,116 4,091 3,775 3,775 3,775

330,097 328,683 327,613 327,613 327,613 279,668 278,788 261,019 259,699 285,989 3,043 3,042 3,037 3,035 3,035 3,035 2,960 2,960 2,960 2,960

Water4,281 4,295 4,311 4,322 4,321 4,349 4,360 4,300 4,300 4,375

Sewers4,462 4,452 4,428 4,428 4,428 4,450 4,400 4,400 4,400 4,500

Police Stations ........

Fire Stations ............

Streets ( Miles) ......

Gallons) ..............

Mains (Miles) .........

Mains (Miles) .........

Arrests ................

Responses (1) ....

in Library (2) .......

Streetlights ............Traffic Signals .......

(Tons per Day) ...

227

Table 31CITY OF CHICAGO, ILLINOISINTEREST RATE SWAP COUNTERPARTY ENTITIESDecember 31, 2017(Amounts are in Thousands of Dollars)

CounterpartyCredit Rating CounterpartyMoody's/S&P Entity

Chicago Midway Airport 76,575 A1/A+ Goldman Sachs Baa1/BBB+51,050 Aa2/AA- Wells Fargo Baa2/BBB

127,625$

Source: Survey of Derivative Instruments.(1) A counterparty may terminate its related interest rate swap if the City rating for the respective credit falls below the rating listed in the column

City ATE Level by Moody's or Standard and Poor's.

City ATELevel (1)

AssociatedBond Issue

Current NotionalAmounts

Total..............................................................

Revenue Bonds (Series 2004C&D ).............

228

Table 32CITY OF CHICAGO, ILLINOISBANK FACILITIESAs of December 31, 2017(Amounts are in Thousands of Dollars)

Ratings Thresholds (1)

Issue Series Principal

Outstanding Expiration or Termination

Bond Maturity

Date Bank Fitch Moody's S&PMidway 2nd Lien 2004 C-1 $ 54,725 11/25/2019 01/01/2035 Bank of Montreal BBB- N/A BBB-Midway 2nd Lien 2004 C-2 $ 64,425 11/25/2019 01/01/2035 Bank of Montreal BBB- N/A BBB-Midway 2nd Lien 2004 D $ 13,050 11/25/2019 01/01/2035 Bank of Montreal BBB- N/A BBB-Midway 2nd Lien 2014 C $ 124,710 07/17/2020 01/01/2035 Barclays (2) (2) (2)O'Hare 3rd Lien 2005 C $ 140,600 07/24/2020 01/01/2035 Bank of America BBB- Baa3 BBB-O'Hare 3rd Lien 2005 D $ 100,000 08/14/2020 01/01/2035 Barclays (2) (2) (2)

Issue Series Borrowing Authority

Amount Outstanding

(Dec. 31, 2017)

Expiration or

Termination Bank Fitch Moody's S&P KrollG. O. Line of Credit 2015 170,000$ 25,734 09/24/2019 JPMorgan BBB- (3) N/A BBB- (3) BBB- (3)G. O. Line of Credit 2015 170,000$ 25,734 09/24/2019 BMO Harris BBB- (3) N/A BBB- (3) BBB- (3)G. O. Line of Credit 2015 170,000$ 25,735 09/24/2019 Bank of China BBB- (3) N/A BBB- (3) BBB- (3)Midway CP 2003A-D 85,000$ - 07/10/2020 JPMorgan BBB- Baa3 BBB- N/AO'Hare CP 2016 (4) 180,000$ 34,301 09/27/2019 Bank of America BBB- (3) Baa3 BBB- (3) N/AO'Hare CP 2016 (4) 120,000$ 46,938 09/27/2019 Bank of Tokyo BBB- (3) Baa3 BBB- (3) N/AO'Hare CP 2016 (4) 120,000$ 21,000 09/27/2019 Barclays BBB- (3) Baa3 BBB- (3) N/AO'Hare Line of Credit 2016 180,000$ 12,098 12/12/2019 JPMorgan BBB- N/A BBB- BBB-

Notes:(1) An underlying rating by any rating agency for the related debt (or lowest rated lien of the related credit) below what is shown in the chart in the "Ratings Threshold" column would constitute an event of default under the agreements with the related banks.(2)The agreement with Barclays provides that it is an event of default if (A) any two Rating Agencies then rating the Debt of the City payable from or secured by Pledged Revenues which is senior to or on parity with the Bonds shall have downgraded their rating on such Debt to or below “Baa2” (or its equivalent) or “BBB” (or its equivalent), respectively, or (B) any Rating Agency shall have downgraded its rating of any Debt of the City payable from or secured by the Pledged Revenues which is senior to or on a parity with the Bonds to below “Baa3” (or its equivalent) or “BBB-” (or its equivalent), respectively, or suspended or withdrawn its rating of the same and such downgrade, suspension or withdrawal shall remain for a period of 180 days.(3) An underlying rating by two of the three rating agencies, S&P, Fitch or Kroll, would constitute an event of default under the agreements with the banks.(4) O'Hare 2009 Program. 2016 Issue series A1-A3, B1-B3 and C1-C3.

Bond Liquidity, Letters of Credit and Direct Purchase Facilities

Commercial Paper (CP) Letters of Credit and Lines of Credit ProvidersRatings Thresholds (1)

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